exercise 8-2

Exercise 8-2 Production Budget [LO8-3) Down Under Products, Ltd.. of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales April May June 88,e0e 9e, eee 128,800 99,000 July 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 month's unit sales. The inventory at the end of March was 13,200 units. Requlred: Prepare a production budget by month and in total, for the second quarter Down Under Products, Ltd. Production Budget April May June Quarter Budgeted units sales Total needs Required production in units