Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June Unit Sales 62,000 80,000 102,000 86,000 July 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 6,200 units. Required: Prepare a production budget by month and in total, for the second quarter. Answer is complete but not entirely correct. Down Under Products, Ltd., Production Budget April May June Budgeted units sales 62,000 80,000 102,000 Add: Desired units of ending finished goods 8.000 10.200 8 ,600 inventory Total needs 70,000 90,200 110,600 Less: Units of beginning finished goods inventory (6,200) (8,000) (10,200) Required production in units 63,800 82,200 100,400 Quarter 244,000 26,800 X 270,800 24,400 X 246,400