Chapter 8, Problem 2E

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

The company is now in the process of preparing a production budget for the second quarter. Past experience h-as shown that end-of-month inventor levels must equal 10% of the following month’s unit sales. The inventory at the end of March was 5,000 units.
Required:
Using Schedule 2 as your guide, prepare a production budget by month and in total, for the second quarter.