Production Budget: Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

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 months sales. The inventory at the end of March was 5,000 units. 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.

Sales in Units May ..90,000 80,000