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 86,000
| Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: |
|
| Sales in Units | ||
| April | 86,000 | ||
| May | 90,000 | ||
| June | 126,000 | ||
| July | 98,000 | ||
| 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 8,600 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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Managerial Accounting
Authors: Ray Garrison, Theresa Libby, Alan Webb
9th canadian edition
1259269477, 978-1259269479, 978-1259024900
