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

 

Sales in Units

April

72,000

May

85,000

June

112,000

July

91,000

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 20% of the following month's sales. The inventory at the end of March was 14,400 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.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92766994
  • Price:- $25

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