Exercise $8-2($Algo$)$ Production Budget $[$LO$8-3]$

Down Under Products' sales budget for the next four months is as follows:

$\backslash$table$[[,],[$April$,$Unit Sales$],[$May$,90,000],[$June$,95,000],[$July$,130,000],[,100,000]]$

The company wants its ending inventory levels to equal $20\%$ of the following month's unit sales. The inventory at the end of March was $18,000$ units.

Required:

Prepare a production budget, by month and in total, for the second quarter.

$\backslash$table$[[$Down Under Products, Lf$\{$rited$],[$Production Budget$],[,$April,May,June,Quarter$],[$Budgeted unit sales,$90,000,95,000,130,000,315,000],[$Add: Desired units of ending finished goods inventory,,,,$20,000],[$Total needs,$90,000,95,000,130,000,335,000],[$Less: Units of beginning finished goods inventory$],[$Required production in units,$90,000,95,000,130,000,335,000]]$