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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

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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 $8,000 90,000 128,000 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 month's unit sales. The inventory at the end of March was 13,200 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Requined production in units Down Under Products, Limited Production Budget April May June Quarter 09.000 90,000 128,000 300,000 80,000 90.000 128,000 300,000 $8,000 90,000 120,000 300.000

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