Cost Accounting: Down Under Products’ sales budget for the next four months is as follows:

Down Under Products’ sales budget for the next four months is as follows:

Unit Sales
April 84,000
May 90,000
June 124,000
July 97,000
The company wants its ending inventory levels to equal 20% of the following month’s unit sales. The inventory at the end of March was 16,800 units.

Required:
Prepare a production budget, by month and in total, for the second quarter.

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