Question - Dawn Under Products, Ltd, of Australia has budgeted sales of its popular boomerang for the next four months as follows:
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Sales in Units
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April
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72,000
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May
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85,000
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|
June
|
112,000
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|
July
|
91,000
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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 20% of the following month's sales. The inventory at the end of March was 14,400 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.