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Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows
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ACCOUNTING

Exercise 9-2 Production Budget [LO3] Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

Sales in Units
April 50,000
May 75,000
June 90,000
July 80,000

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 10% of the following month's sales. The inventory at the end of March was 5,000 units.

Required:
Show the number of units to be produced each month and for the quarter in total.

 

FILE: MS WORD

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