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		68,000
May		80,000
June		108,000
July		89,000

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 6,800 units.

Required:

Prepare a production budget by month and in total, for the second quarter.

Explanation

Desired units of ending finished goods inventory is 10% of the following month's sales in units.

Thanks