$2$

Exercise $8-2($Algo$)$ Production Budget $[$LO$8-3]$

$1\mathrm{.}87$

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References

Down Under Products' sales budget for the next four months is as follows:

$\backslash$begin$\{$tabular$\}\{$lr$\}$

& Unit Sales $\backslash \backslash$

$\backslash$hline April & $78,000\backslash \backslash$

May & $85,000\backslash \backslash$

June & $118,000\backslash \backslash$

July & $94,000$

$\backslash$end$\{$tabular$\}$

The company wants its ending inventory levels to equal $20\backslash \%$ of the following month's unit sales. The inventory at the end of March was $15,600$ units.

Required:

Prepare a production budget, by month and in total, for the second quarter.