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 88, 000 90, 000 128, 000 99, 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 levels must equal 15% 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. Down Under Products, Limited Production Budget April May June Quarter Budgeted unit sales Total needs Required production in units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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
Unit Sales
88, 000
90, 000
128, 000
99, 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 levels must equal 15% 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.
Down Under Products, Limited
Production Budget
April
May
June
Quarter
Budgeted unit sales
Total needs
Required production in units
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 Unit Sales 88, 000 90, 000 128, 000 99, 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 levels must equal 15% 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. Down Under Products, Limited Production Budget April May June Quarter Budgeted unit sales Total needs Required production in units
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