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April May June July Unit Sales 72,000 85,000 112,000 91,000 he company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- onth inventory levels must equal 20% of the following month's unit sales. The inventory at the end of March was 14,400 units. equired: repare a production budget by month and in total, for the second quarter.

April May June July Unit Sales 72,000 85,000 112,000 91,000 he company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of- onth inventory levels must equal 20% of the following month's unit sales. The inventory at the end of March was 14,400 units. equired: repare a production budget by month and in total, for the second quarter.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please provide the correct values for the two incorrect cells, highlighted in red.

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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. > Answer is complete but not entirely correct. Down Under Products, Limited, Production Budget April Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units 72,000 17,000 89,000 14,400 74,600 3 May 85,000✔ 22,400✔ 107,400 17,000 90,400 June 112,000✔ 18,200✔ 130,200 22,400 107,800 Quarter 269,000✔ 57,600 X 326,600 53,800 X 272,800
Transcribed Image Text: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. > Answer is complete but not entirely correct. Down Under Products, Limited, Production Budget April Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units 72,000 17,000 89,000 14,400 74,600 3 May 85,000✔ 22,400✔ 107,400 17,000 90,400 June 112,000✔ 18,200✔ 130,200 22,400 107,800 Quarter 269,000✔ 57,600 X 326,600 53,800 X 272,800
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