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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 56, 600
May 75, 900
June 96, 600
July 83, 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 5,600 units.
Required: Prepare a production budget by month and in total, for the second quarter.
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