Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales 80,000 90,000 April May June July 120,000 95,000 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 8,000 units. Required: Prepare a production budget by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April 0 0 May 0 0 June 0 0 Quarter 0 0

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
80,000
90,000
120,000
95,000
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 8,000 units.
Required:
Prepare a production budget by month and in total, for the second quarter.
Total needs
Budgeted unit sales
Required production in units
Down Under Products, Limited
Production Budget
April
0
0
May
0
0
June
0
0
Quarter
0
0
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 80,000 90,000 120,000 95,000 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 8,000 units. Required: Prepare a production budget by month and in total, for the second quarter. Total needs Budgeted unit sales Required production in units Down Under Products, Limited Production Budget April 0 0 May 0 0 June 0 0 Quarter 0 0
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