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 58,000 75,000 98,000 84,000 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 15% of the following month's unit sales. The inventory at the end of March was 8,700 units. Required:

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Exercise 8-2 (Algo) Production Budget [LO8-3]
Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Unit Sales
58,000
75,000
April
May
June
July
98,000
84,000
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 15% of the following month's unit sales. The inventory at the end of March was 8,700 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:Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales 58,000 75,000 April May June July 98,000 84,000 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 15% of the following month's unit sales. The inventory at the end of March was 8,700 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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