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Prepare a production budget by month and in total

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Reference no: EM132542689

Question - Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

Unit Sales

April 90,000

May 95, 000

June 130,000

July 100,000

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 18,000 units.

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

Reference no: EM132542689

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