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Down Under Products, Ltd. of Australia has budgeted sales of its popular boomerang for the next four months as follows April May June July Unit

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Down Under Products, Ltd. of Australia has budgeted sales of its popular boomerang for the next four months as follows April May June July Unit Sales 80,000 90,000 120,000 95,000 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 month's unit sales. The inventory at the end of March was 8,000 units. Required: Prepare a production budget by month and in total, for the second quarter June Down Under Products, Ltd., Production Budget April Budgeted unit sales 80,000 Add Desired units of ending finished goods inventory 9,000 Total needs 89 000 Quarter 95,000 May 90,000 12,000 102.000 120,000 9,500 129,500 95,000 Required production in units 89,000 102,000 129,500 95,000

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