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Prepare a production budget by month

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Reference no: EM133177568

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

Unit Sales

April 60,000

May 80,000

June 100,000

July 85,000

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 12,000 units.

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

Reference no: EM133177568

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