Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products' sales budget for the next four months is as follows: Unit Sales April May June July 90,000 95,000 130,000 100,000 The company wants its ending inventory levels to equal 20% of the following month's unit sales. The inventory at the end of March was 18,000 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units Down Under Products, L+aited Production Budget April May June Quarter 90,000 95,000 130,000 315,000 20,000 90,000 95,000 130,000 335,000 90,000 95,000 130,000 335,000

Exercise 8-2 (Algo) Production Budget [LO8-3] Down Under Products' sales budget for the next four months is as follows: Unit Sales April May June July 90,000 95,000 130,000 100,000 The company wants its ending inventory levels to equal 20% of the following month's unit sales. The inventory at the end of March was 18,000 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Add: Desired units of ending finished goods inventory Total needs Less: Units of beginning finished goods inventory Required production in units Down Under Products, L+aited Production Budget April May June Quarter 90,000 95,000 130,000 315,000 20,000 90,000 95,000 130,000 335,000 90,000 95,000 130,000 335,000

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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