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 52,000
| Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: |
|
| Sales in Units | ||
| April | 52,000 | ||
| May | 75,000 | ||
| June | 92,000 | ||
| July | 81,000 | ||
| 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 15% of the following months sales. The inventory at the end of March was 7,800 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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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
9780078025525, 9780077517359, 77517350, 978-0077398194
