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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
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 84, 000 90, 000 124,000 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 month's 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. Down Under Products, Ltd. Production Budget April May June Quarter 84,000 90,000 124,000 Budgeted units sales Add: Desired units of ending finished goods inventory Total needs 84,000 90,000 124,000 84,000 90,000 24,000 Required production in units
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