Down Under Products, Ltd., of Australia has budgeted sales of its popular boomer
ID: 2509003 • Letter: D
Question
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: 82,000 90,000 122,000 96,000 April Hay July 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 12,300 units. Required Prepare a production budget by month and in total, for the second quarter Down Under Products, Ltd., Production Budget Budgreted units sales Total needs Required production in unitsExplanation / Answer
Answer
Working
April
May
June
July
A
Budgeted Unit Sales
82000
90000
122000
96000
B=15% of next month's 'A'
Add: Expected ending inventory
13500
18300
14400
0
C=A+B
Total Requirement
95500
108300
136400
96000
D=Ending Inventory ['B' of last month]
Less: Beginning Inventory
12300 [given]
13500
18300
14400
E=C-D
Required Production in Units
83200
94800
118100
81600
April
May
June
Quarter
Budgeted Unit Sales
82000
90000
122000
294000
Add: Expected Ending Inventory
13500
18300
14400
14400
Total Needs
95500
108300
136400
308400
Less: Beginning Inventory
12300
13500
18300
12300
Required production in units
83200
94800
118100
296100
Working
April
May
June
July
A
Budgeted Unit Sales
82000
90000
122000
96000
B=15% of next month's 'A'
Add: Expected ending inventory
13500
18300
14400
0
C=A+B
Total Requirement
95500
108300
136400
96000
D=Ending Inventory ['B' of last month]
Less: Beginning Inventory
12300 [given]
13500
18300
14400
E=C-D
Required Production in Units
83200
94800
118100
81600
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.