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Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next...

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Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next...

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows 1 Uni
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows 1 Unit Sales 74,000 April Кay June 85,000 114,000 July 92,000 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 10% of the following month's unit sales. The inventory at the end of March was 7,400 units. Required: Prepare a production budget by month and in total, for the second quarter. Down Under Products, Ltd. Production Budget Quarter June Аpril May Budgeled unit sales 0 Total needs 0 0 Required production in units

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Answer:

Down Under Products Ltd.
Production Budget
April May June Quarter
Budgeted unit sales         74,000        85,000       1,14,000       2,73,000
Add:Ending inventory (85,000*10%)           8,500 (114,000*10%)        11,400 (92,000*10%)            9,200          29,100
Total needs         82,500        96,400       1,23,200       3,02,100
less:Beginning inventory           7,400          8,500          11,400          27,300
Required production in units         75,100        87,900       1,11,800       2,74,800


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