II. Preparing a Production Budget Down Under Products, Ltd., of Australia, has budgeted sales of its popular boomerang for next four months as follows; April May June July 50,000 75,000 90,000 80,000 Sales in Units The company is now in the process of preparing a production budget for the second quarter. Past experiences have shown that end-of-month inventory levels must equal 10% of the following month's sales. The inventory at the end of March was 5,000 units. Required: Prepare a production budget for the second quarter; in your budget, show the number of units to be 7 marks produced each month and for the quarter in total.

II. Preparing a Production Budget Down Under Products, Ltd., of Australia, has budgeted sales of its popular boomerng for next four months as follows; The company is now in the process of preparing a production budget for the second quarter. Past experiences have shown that end-of-month inventory levels must equal 10% of the following month's sales. The inventory at the end of March was 5,000 units. Required: Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total. 7 marks