Question: 2 . Production Budget Down Under Products, Ltd . , of Australia has budgeted sales of its popular boomerang or the next four months as

2. Production Budget
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang or the next four months as follows:
Sales in Units
April 50,000
May 75,000
June 90,000
July 80,000
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 10% of the following months sales. The inventory at the end of March was 5,000 units.
Prepare a production budget for the second quarter. In your budget, show the number of units to be produced each month and for the quarter in total.

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