Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 88,000 90,000 128,000 99,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-c 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, Ltd., Production Budget April May June Quarter 128,000 14,850 Budgeted unit sales 88,000 90,000 306,000 Add: Desired units of ending finished goods inventory 13,500 19,200 Total needs 101,500 109,200 142,850 306,000 Less: Units of beginning finished goods inventory (13,200) (13,500) (19,200) Required production in units 88,300 95,700 123,650 306,000

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 88,000 90,000 128,000 99,000 The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-c 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, Ltd., Production Budget April May June Quarter 128,000 14,850 Budgeted unit sales 88,000 90,000 306,000 Add: Desired units of ending finished goods inventory 13,500 19,200 Total needs 101,500 109,200 142,850 306,000 Less: Units of beginning finished goods inventory (13,200) (13,500) (19,200) Required production in units 88,300 95,700 123,650 306,000

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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