Question: Preparing a Production Budget [LO2 CC6] Down Under Products, Ltd., of Australia, has budgeted sales of its popular boomerang for the next four months as
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Preparing a Production Budget [LO2 CC6] Down Under Products, Ltd., of Australia, has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units April 50,000 May 75,000 June 90,000 July 80,000 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 10% of the following month's sales. The inventory at the end of March was 5,000 units. (Australia's currency is the Australian dollar.) Required: Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total
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