Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four
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Question:
Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows:
| Unit Sales | |
|---|---|
| April | 52,000 |
| May | 75,000 |
| June | 92,000 |
| July | 81,000 |
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 15% of the following months unit sales. The inventory at the end of March was 7,800 units.
Required:
Prepare a production budget by month and in total, for the second quarter.
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