Exercise rroauction buaget LU
Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows:
tableUnitSalesAprilMayJuneJuly
The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that endofmonth inventory levels must equal of the following month's unit sales. The inventory at the end of March was units.
Required:
Prepare a production budget by month and in total, for the second quarter.
tableDown Under Products, Limited,Production BudgetApril,May,June,QuarterBudgeted unit sales,Add: Desired units of ending finished goods inventoryTotal needs,Less: Units of beginning finished goods inventoryRequired production in units,
