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Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units April 68,000
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: |
| Sales in Units | ||
April | 68,000 | ||
May | 80,000 | ||
June | 108,000 | ||
July | 89,000 | ||
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 months sales. The inventory at the end of March was 6,800 units. |
Required: |
Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total. |
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