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	84,000
May	90,000
June	124,000
July	97,000

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 16,800 units.

Required:

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