Question
Exercise 7-2 Production Budget [LO7-3] Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Exercise 7-2 Production Budget [LO7-3]
| Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: |
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| Sales in Units | ||
| April | 88,000 | ||
| May | 90,000 | ||
| June | 128,000 | ||
| July | 99,000 | ||
| 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 13,200 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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Eco Management The Elmwood Guide To Ecological Auditing And Sustainable Business
Authors: Ernest Callenbach, Fritjof Capra, Lenore Goldman, Rudiger Lutz
1st Edition
1881052273, 978-1881052272
