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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

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 7,400 units.

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Down Under Products, Lid., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 74,080 May 85, 080 June 114, 080 July 92, 080 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 7,400 units. Required: Prepare a production budget by month and in total, for the second quarter. Down Under Products, Ltd., Production Budget April May June Quarter Budgeted unit sales Total needs 0 0 0 Required production in units 0

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