Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales 54,000 75,000 94,000 82,000 April May June 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 levels must equal 20% of the following month's unit sales. The inventory at the end of March was 10,800 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

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
54,000
75,000
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 10,800 units.
94,000
82,000
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 i
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: April May June. July Unit Sales 54,000 75,000 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 10,800 units. 94,000 82,000 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 i Production Budget April May June Quarter
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