Problem: 2

Zeal Companys budgeted sales of its Laptops for next four months as follows:

Sales Budget in Units

Month	Units
April	3000
May	3200
June	3250
July	3300

The company is now in the process of preparing a production budget for the second quarter. Ending inventory level must equal 10% of the next months sales.

Required:

a) Calculate the ending inventory as of March 31. (1 Mark)

b) Prepare a production budget for the second quarter (April, May & June) showing the number of units to be produced each month and for the quarter in total. (2 Marks)