Down Under Products' sales budget for the next four months is as follows: Unit Sales April May June July 78,000 85,000 118,000 94,000 The company wants its ending inventory levels to equal 20% of the following month's unit sales. The inventory at the end of Mar was 15,600 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Down Under Products, Limited Production Budget April May June Quarter

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 15E: Palmgren Company produces consumer products. The sales budget for four months of the year is...
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Down Under Products' sales budget for the next four months is as follows:
Unit Sales
April
May
June
July
78,000
85,000
118,000
94,000
The company wants its ending inventory levels to equal 20% of the following month's unit sales. The inventory at the end of March
was 15,600 units.
Required:
Prepare a production budget, by month and in total, for the second quarter.
Budgeted unit sales
Total needs
Required production in units
Down Under Products, Limited
Production Budget
April
May
June
Quarter
0
0
0
0
0
0
0
0
Transcribed Image Text:Down Under Products' sales budget for the next four months is as follows: Unit Sales April May June July 78,000 85,000 118,000 94,000 The company wants its ending inventory levels to equal 20% of the following month's unit sales. The inventory at the end of March was 15,600 units. Required: Prepare a production budget, by month and in total, for the second quarter. Budgeted unit sales Total needs Required production in units Down Under Products, Limited Production Budget April May June Quarter 0 0 0 0 0 0 0 0
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