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Q1) Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for next four months as follows:


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

Company is now in process of creating production budget for second quarter. Past experience has illustrated that end-of-month inventory levels should equal 10% of following month's sales. Inventory at the end of March was 5,000 units.

problem:

Create production budget for second quarter; in your budget, illlustrate number of units to be produced each month and for quarter in total.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M918778

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