Can someone plese help me fill in these boxes how they are please, Managerial Ac
ID: 2491701 • Letter: C
Question
Can someone plese help me fill in these boxes how they are please,
Managerial Accounting chapter 7
Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: 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 18,000 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.Explanation / Answer
Down under Products Limited Production Budget April May June Quarter Budgeted Unit Sales 90000 95000 130000 315000 Add: Desired ending inventory 19000 26000 20000 20000 Total Needs 109000 121000 150000 335000 Less: Beginning Inventory 18000 19000 26000 18000 Required production in units 91000 102000 124000 317000 Note: Desired ending inventory: 20% * Next Month Budgeted unit sales Beginning inventory: Desired ending inventory of last month