Question
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows : Sales in Units April
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows
: Sales in Units April 56,000 May 75,000 June 96,000 July 83,000
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 5,600 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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