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Please fill in the blanks where they are wrong Exercise 8-2 (Algo) Production Budget (LO8-3] Down Under Products, Limited, of Australia has budgeted sales of
Please fill in the blanks where they are wrong
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: April May June July Unit Sales 72,000 85,000 112,000 91,000 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 14,400 units. Required: Prepare a production budget by month and in total, for the second quarter. X Answer is complete but not entirely correct. June Quarter 112,000 91,000 X Down Under Products, Limited, Production Budget April Budgeted unit sales 72,000 Add: Desired units of ending finished goods inventory 14,400 X Total needs 86,400 Less: Units of beginning finished goods inventory 14,400 Required production in units 72,000 22,400 X 18,200 May 85,000 17,000 X 102,000 14,400 x 87,600 134,400 109,200 17,000 117,400 14,400 94,800Step by Step Solution
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