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$,58,000],[$May$,75,000],[$June$,98,000],[$July$,84,000]]$

The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that en month inventory levels must equal $15\%$ of the following month's unit sales. The inventory at the end of March was $8,700$ units.

Required:

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

$\backslash$table$[[$Down Under Products, Limited$],[$Production Budget$],[,$April,May,June,Quarter$],[$Budgeted unit sales,$58,000,75,000,98,000,231,000],[$Add: Desired units of ending finished goods inventory,$11,250,14,700,12,600,8,700],[$Total needs,$69,250,89,700,110,600,239,700],[$Less: Units of beginning finished goods inventory$],[$Required production in units,$69,250,89,700,110,600,239,700]]$