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Not sure why the Quarter end amounts are incorrect. Please explain. Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for

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Not sure why the Quarter end amounts are incorrect. Please explain.

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 66,000 80,000 106,000 88,000 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 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. Answer is complete but not entirely correct. Down Under Products, Limited Production Budget April Budgeted unit sales 66.000 Add: Desired units of ending finished goods inventory 16,000 Total needs 82,000 Less: Units of beginning finished goods inventory 13,200 Required production in units 68,800 May 80,000 21,200 101,200 16,000 85,200 June 106,000 17,600 123,600 21,200 102,400 Quarter 252,000 54,800 x 306,800 50,400 X 256,400

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