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$],[$April$,86,000],[$May$,90,000],[$June$,126,000],[$July$,98,000]]$

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 $8,600$ 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$],[,,,,],[$Total needs,,,,$],[,,,,],[$Required production in units,,,,$]]$