Production Budget

Down Under, Ltd, of Australia has budgeted its popular boomerang for the next four months as follows:

Unit Sales

April .....................50,000

May ......................75,000

June ..................... 90,000

July ........................80.000

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 10 % of the following month's unit sales The inventory at the end of March was 5,000 units

Required

Using Schedule 2 as your guide, prepare a production budget by month and in total for the second quarter.