Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:
|
Sales in Units |
| April |
|
84,000 |
|
| May |
|
90,000 |
|
| June |
|
124,000 |
|
| July |
|
97,000 |
|
|
|
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 20% of the following month's sales. The inventory at the end of March was 16,800 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.
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