## Question

###### 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 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

## Answers

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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