Question
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 52,000 May
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Unit Sales | |||
April | 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 unit sales. The inventory at the end of March was 7,800 units.
Unit Sales | |||
April | 52,000 | ||
May | 75,000 | ||
June | 92,000 | ||
July | 81,000 | ||
Required:
Prepare a production budget by month and in total, for the second quarter.
Budgeted unit sales: April May June Quarter
Total needs: April May June Quarter
Required Production in Units: April May June Quarter
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