Managerial Accounting: E8-2 Down Under Products, Ltd of Australia has budgeted sales
Managerial Accounting E8-2 Production Budget Down Under Products, Ltd of Australia has budgeted sales of its popular boomerang for the next four months as follows. Sales in Units April 66,000 May 80,000 June 106,000 July 88,000
The company is now in the process of preparing a production buget for the second quarter. Past exerience has shown that end-of-month inventory levels must equal 20% of the following month's sales. The inventory at the end of March was 13,200 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.