Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:…
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Question “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:
Unit Sales | |||
April | 52,000 | ||
May | 75,000 | ||
June | 92,000 | ||
July | 81,000 | ||
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 15% of the following month’s unit
sales. The inventory at the end of March was 7,800 units.
Unit Sales | |||
April | 52,000 | ||
May | 75,000 | ||
June | 92,000 | ||
July | 81,000 | ||
Required:
Prepare a production budget by month and in total, for the
second quarter.
Budgeted unit sales: April
May June
Quarter
Total needs: April
May June
Quarter
Required Production in Units: April
May June
Quarter
Answer
Answer
–Production Budget
April | May | June | Quarter | ||||||
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| 63,250 | 88,800 | 104,150 | 231,150 | |||||
| 7,800 | 11,250 | 13,800 | 7,800 | |||||
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Conclusion
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