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: Unit Sales 86,000 April May June July 126,000 98,000 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 unit sales. The inventory at the end of March was 8,600 units. Required: Prepare a production budget by month and in total, for the second quarter Down Under Products, Ltd., Production Budget April May June Quarter Budgeted units sales Total needs Required production in units

Explanation / Answer

Down Under Products, Ltd., Production Budget April May June Quarter Budgeted units sales 86,000 90,000 126,000 302,000 Add: Required Ending inventory 90,000 x 10% = 9,000 126,000 x 10% = 12,600 98,000 x 10% = 9,800 31,400 Total needs 95,000 102,600 135,800 333,400 Less: Beginning inventory 8,600 9,000 12,600 30,200 Required production in units 86,400 93,600 123,200 303,200

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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