Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next

four months as follows:

Sales in Units

April . . . . . . . . . . . . . 50,000

May . . . . . . . . . . . . . 75,000

June . . . . . . . . . . . . . 90,000

July . . . . . . . . . . . . . 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 months

sales. The inventory at the end of March was 5,000 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