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:

Unit Sales

April $66,000$

May $80,000$

June $106,000$

July $88,000$

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 $20\%$ of the following month$$s unit sales. The inventory at the end of March was $13,200$ units.

Required:

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