01 10.00 pornts Down underProducts, Ltdof Australe has budgeted sales ot portar

Question

01 10.00 pornts Down underProducts, Ltdof Australe has budgeted sales ot portar boemerg ti me ned har 5,000 July 34.00 The conpany is now n the process of prepasng a preduchon budget fer tha sacend quarter. Past experiance Tiai shawn that end-st manth inenary os st oqud 15% of the talowing monh's sales The ineemory at the und of March was 8,709 urs Requred: Prepare a prodection tudget for the second quareri your bupi sho the sumbet of srhs to se Down Ueder Progucts, Ltd Produrtion Bedpet Apnt Racunad product on i uS Type here to search

Explanation / Answer

Prepare production budget :

April May June Quarter Budgeted sales 58000 75000 98000 231000 Add: Desired ending inventory 11250 14700 12600 12600 Total needs 69250 89700 110600 243600 Less: Beginning inventory (8700) (11250) (14700) (8700) Production units 60550 78450 95900 234900

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