Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products, Limited of Australia has budgeted sales of...

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Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 70,000 85,000 110,000 90,000 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 month's unit sales. The inventory at the end of March was 10,500 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April May June Quarter 0 0 0 0 Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 70,000 85,000 110,000 90,000 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 month's unit sales. The inventory at the end of March was 10,500 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April May June Quarter 0 0 0 0