Make a production budget by month and in total

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

Unit Sales

April 88,000

May 90,000

June 128,000

July 99,000

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 15% of the following month's unit sales. The inventory at the end of March was 13,200 units.

Required:

Question 1: Make a production budget by month and in total, for the second quarter.

Reference no: EM132600377

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