Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April May June July 66,000 80,000 106,000 88,000 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 13,200 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 May June Quarter

Cornerstones of Cost Management (Cornerstones Series)
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Unit Sales
April
May
June
July
66,000
80,000
106,000
88,000
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 13,200 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
May
June
Quarter
Transcribed Image Text:Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April May June July 66,000 80,000 106,000 88,000 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 13,200 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 May June Quarter
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