Down Under Products, Ltd., of Australia has budgeted sales of its popular boomer

Question

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

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 8,700 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., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

Explanation / Answer

Down Under Products Ltd. Production Budget Particulars April May June Total Sales in Units 58000 75000 98000 231000 Add: Desired Closing Units 11250 14700 12600 12600 (15% of Next Month Sales) Total Required Units 69250 89700 110600 243600 Less: Opening Units 8700 11250 14700 8700 Production to be done 60550 78450 95900 234900

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.