FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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100%
aces
ww
7
1₂
Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows:
B
April
May
June
July
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 15% of the following month's unit sales. The inventory at the end of March was 8,700 units.
Required:
Prepare a production budget by month and in total, for the second quarter.
Unit Sales
58,000
75,000
98,000
84,000
Budgeted unit sales
Total needs
Required production in units
f3
#
Z
f4
$
1
fs
71%
Down Under Products, Limited
Production Budget
April
-
f6
Q Search
4-
^
f7
+
&
May
fg
June
< Prev
*
tg
1 of 1
lyfi
144
Quarter
f10
Next >
DII
f11
99
f12
expand button
Transcribed Image Text:aces ww 7 1₂ Down Under Products, Limited of Australia has budgeted sales of its popular boomerang for the next four months as follows: B April May June July 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 15% of the following month's unit sales. The inventory at the end of March was 8,700 units. Required: Prepare a production budget by month and in total, for the second quarter. Unit Sales 58,000 75,000 98,000 84,000 Budgeted unit sales Total needs Required production in units f3 # Z f4 $ 1 fs 71% Down Under Products, Limited Production Budget April - f6 Q Search 4- ^ f7 + & May fg June < Prev * tg 1 of 1 lyfi 144 Quarter f10 Next > DII f11 99 f12
Expert Solution
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Step 1: Concept

Production budget is prepared to Calculate total production required during the year.

Budgeted production : Closing stock + Budgted sales - Opening stock

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