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

Down Under Products, Limited, of Australia has budgeted sales of its popular boomerang for the next four months as follows:

$\backslash$table$[[,$Unit$],[,$Sales$],[,80,000],[$April$,90,000],[$May$,120,000],[$June$,95,000]]$

The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end$-$ofmonth inventory levels must equal $10\%$ of the following month's unit sales. The inventory at the end of March was $8,000$ units.

Required:

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

$\backslash$table$[[$Down Under Products, Limited,,,,$],[$Production Budget,,,$],[$Budgeted unit sales,April,May,June,Quarter$],[$Add: Desired units of ending finished goods inventory,$80,000,90,000,120,000,95,000],[$Total needs,$8,000,,,],[$Less: Units of beginning finished goods inventory,$88,000,90,000,120,000,95,000],[$Required production in units,,,,$]]$