Question
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 84,000 May
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
| Unit Sales | |||
| April | 84,000 | ||
| May | 90,000 | ||
| June | 124,000 | ||
| July | 97,000 | ||
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 20% of the following months unit sales. The inventory at the end of March was 16,800 units.
Required:
Prepare a production budget by month and in total, for the second quarter.
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
