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Repare a production budget by month and in total

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Reference no: EM131702103

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.

Reference no: EM131702103

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