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 Sales in Units 72,000 85,000 112,000 91,000 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 sales The inventory at the end of March was 14,400 units Required Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total 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

*20% of the following month's sales in units

April May June Quarter Budgeted units sales 72,000 85,000 112,000 269,000 Add: Desired units of ending finished goods inventory* 17,000 22,400 18,200 18,200 Total needs 89,000 107,400 130,200 287,200 Less: Units of beginning finished goods inventory 14,400 17,000 22,400 14,400 Required production in units 74,600 90,400 107,800 272,800

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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