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 has shown that end-of-month inventory levels must equal 10% of the following month’s sales. The inventory at the end of March was 5,000 units.

Required:

Prepare a production budget for the second quarter; in your budget, show the number of units to be produce each month and for the quarter in total.

Transcribed Image Text:

Sales in units April 50,000 75,000 May June 90,000 July 80,000