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Below is budgeted production and sales information for Flushing Company for the month of December
Below is budgeted production and sales information for Flushing Company for the month of December.
Product XXXProduct ZZZEstimated beginning inventory30,400 units19,900 unitsDesired ending inventory34,800 units15,000 unitsRegion I, anticipated sales349,000 units277,000 unitsRegion II, anticipated sales200,000 units140,000 units
The unit selling price for product XXX is $7 and for product ZZZ is $14.
Budgeted sales for the month is
a.$13,524,000
b.$9,681,000
c.$10,605,000
d.$6,762,000
Expert Solution
Answer:
Budgeted Sales for the month = $ 9,681,000 (option b)
Product XXX
Anticipate sales Region 1.....349000
Anticipate sales Region 2....200000
Total units....................................549000
Sales XXX = 549000 units * $7 = $ 3843000
Product ZZZ
Anticipate sales Region 1.....277000
Anticipate sales Region 2....140000
Total units....................................417000
Sales ZZZ = 417000 units * $14 = $ 5838000
Sales XXX + Sales ZZZ = $ 3843000 + $ 5838000 = $ 9,681,000 (option b)
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