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Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July

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Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 50,000 75,000 90,000 80,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- month inventory levels must equal 10% of the following month's unit sales. The inventory at the end of March was 5,000 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units Down Under Products, Limited Production Budget April May June Quarter 50,000 75,000 90,000 215,000 7,500 9,000 57,500 84,000 90,000 215,000 5,000 7,500 9,000 52,500 76,500 81,000 215,000

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