Down Under Products, Limited, of Australla 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: 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

Down Under Products, Limited, of Australla 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: 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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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