Question: 9-2 Down Under Products, Ltd., of Australia has bu…
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
|Sales in Units|
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 sales. The inventory at the end of March was 6,200 units.
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.,|
|Budgeted unit sales|
|Required production in units|