Down Under Products, Ltd., of Australlia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April 84,000 Мay 98, 000 June 124,000 July 97,000 The company is now In the process of preparing a production budget for the second quarter. Past experlence 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 16,800 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 Budgeted unit sales Total needs Required production in units

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Unit Sales
April
Мay
84,000
90,000
124, 00e
97, 000
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 16,800 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
Budgeted unit sales
Total needs
Required production in units
Transcribed Image Text:Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April Мay 84,000 90,000 124, 00e 97, 000 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 16,800 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 Budgeted unit sales Total needs Required production in units
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