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:

	Unit Sales
April	54,000
May	75,000
June	94,000
July	82,000

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 20% of the following months unit sales. The inventory at the end of March was 10,800 units.

Required:

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

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: The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-0 month inventory levels must equal 20% of the following month's unit sales. The inventory at the end of March was 10,800 units. Required: Prepare a production budget by month and in total, for the second quarter