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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.
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