Christian Company has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units 50,000 April Мay June 75,000 90,000 80,000 July 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 level must equal 10% of the following month's 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.
Christian Company has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units 50,000 April Мay June 75,000 90,000 80,000 July 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 level must equal 10% of the following month's 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 10
Christian Company has budgeted sales of its popular boomerang for the next four
months as follows:
April
May
June
July
Sales in Units
50,000
75,000
90,000
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 level must equal
10% of the following month's 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.
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