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 52,000 May 75,000 June 92,000 July 81,000 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 unit sales. The inventory at the end of March was 7,800 units. Required: Prepare a production budget by month and in total, for the second quarter.Dr

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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: AprilMayJuneJulyUnitSales52,00075,00092,00081,000 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 7,800 units. Required: Prepare a production budget by month and in total, for the second quarter. \begin{tabular}{|l|l|l|l|l|l|} \hline \multicolumn{1}{|c|}{ Down Under Products, Limited } \\ \hline \end{tabular} Add: Desired units of ending finished goods inventory Add: Units of beginning finished goods inventory Less: Desired units of ending finished goods inventory Less: Units of beginning finished goods inventory