SCHEDULE 2 B C D E F A Hampton Freeze, Inc. Production Budget For the Year Ended December 31, 2017 6 (in cases) Assumed 8 Quarter 2 3 Year 10 Budgeted unit sales (Schedule 1) 10,000 30,000 40,000 20,000/100,000 20% 20% 20% 11 Add desired units of ending finished goods inventory* 6,000 8,000 4,000 3,000 3,000 12 Total needs 16,000 38,000 44,000 23,000 103,000 13 Less units of beginning finished goods inventory 2,000 6,000 8.000 4.000 2,000 14 Required production in units 14,000 32,000 36,000 19,000 101,000 15 16 Budgeting Assumptions Schedule 1 Schedule 2 / Schedule 3 / Schedul *Twenty percent of next quarter's sales. For example, the second-quarter sales are 30,000 cases. Therefore, the desired ending inventory of finished goods for the first quarter would be 20% x 30,000 cases = 6,000 cases. "The beginning inventory in each quarter is the same as the prior quarter's ending inventory.Down Under Products. Ltd.. of Australia has budgeted sales of its popular boomerang for the next four months as follows: Unit Sales 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% ofthe following months unit sales. The inventory at the end of March was 5.000 units. Required' Using Schedule 2 as your guide. prepare a production budget by month and in total. for the second quarter