Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the...
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Accounting
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
Unit Sales
April
80,000
May
90,000
June
120,000
July
95,000
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 months unit sales. The inventory at the end of March was 8,000 units.
Required:
Prepare a production budget by month and in total, for the second quarter.
Exercise 8-2 Production Budget [L08-3] Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 80,000 90,000 120,000 95,000 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 8,000 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 units sales Total needs 0 0 0 Required production in units 0 0
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