Prepare a production budget by month and in total

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

Unit Sales

April 74,000

May 85,000

June 114,000

July 92,000

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 unit sales. The inventory at the end of March was 7,400 units.

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

Reference no: EM133057794

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