Down Under Products, Ltd., of Australia has budgeted sales of its popular boomer

Question

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June July Unit Sales 68,000 80,000 108,000 89,000 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 6,800 units Required Prepare a production budget by month and in total, for the second quarter Down Under Products, Ltd., Production Budget April May June Quarter Budgeted units sales Total needs Required production in units

Explanation / Answer

Down Under Products, Ltd.,

Production Budget

April May June Quarter Budgeted unit sales 68,000 80,000 108,000 256,000 Add: Desired units of ending finished goods inventory 8,000 10,800 8,900 8,900 Total needs 76,000 90,800 116,900 264,900 Less: Units of beginning finished goods inventory 6,800 8,000 10,800 6,800 Required production in units 69,200 82,800 106,100 258,100

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.