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

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

	Sales in Units
April		62,000
May		80,000
June		102,000
July		86,000

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 6,200 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:  Desired units of ending finished goods inventory is 10% of the following month's sales in units.