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

Question

Down Under Products Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: April May June 124,000 97.000 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 20% of the following month's sales. 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

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars April May June Quarter July Budgeted Unit Sales                     84,000.00              90,000.00               124,000.00            298,000.00               97,000.00 Ending Inventory                     18,000.00              24,800.00                 19,400.00              19,400.00 Total Needs                   102,000.00           114,800.00               143,400.00            317,400.00 Beginning Inventory                     16,800.00              18,000.00                 24,800.00              16,800.00 Required production in units                     85,200.00              96,800.00               118,600.00            300,600.00

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