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Down under products ltd of australia has budgeted sales

28/04/2021 Client: muhammad11 Deadline: 2 Day

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

Sales in units April 50,000 75,000 May June 90,000 July 80,000

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 sales. The inventory at the end of March was 5,000 units.

Required:

Prepare a production budget for the second quarter; in your budget, show the number of units to be produce each month and for the quarter in total.

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