Question

Please answer this question. Thank you

value 0.70 points Down Under Products, Ltd, of Australia has budgeted sales of its popular boormerang for the next four months as follows: 52,000 75,000 92,000 81,000 April June 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 15% of the following month's sales. The inventory at the end of March was 7,800 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

Answer 1

Down under Products, Ltd.
Production Budget
	April	May	June	Quarter
Budgeted units sales	52,000	75,000	92,000	219,000
Ending Inventory	75,000 x 15% = 11,250	92,000 x 15% = 13,800	81,000 x 15% = 12,150	12,150
Total needs	63,250	88,800	104,150	231,150
Beginning Inventory	7,800	11,250	13,800	7,800
Required production in units	55,450	77,550	90,350	223,350