Below is budgeted production and sales information for Flushing Company for the
ID: 2372354 • Letter: B
Question
Below is budgeted production and sales information for Flushing Company for the month of December:
Estimated beginning inventory: Product XXX= 30,000 units Product ZZZ= 18,000 units
Desired ending inventory: Product XXX= 34,000 units Product ZZZ= 17,000 units
Region I, anticipated sales: Product XXX= 320,000 units Product ZZZ= 260,000 units
Region II, anticipated sales: Product XXX= 180,000 units Product ZZZ= 140,000 units
THE UNIT SELLING PRICE FOR PRODUCT XXX IS $6 AND FOR PRODUCT ZZZ IS $15.
(1.) BUDGETED SALES FOR THE MONTH ARE: ? $_________________
(2.) BUDGETED PRODUCTION UNITS FOR PRODUCT XXX DURING THE MONTH IS:? _________________units
Explanation / Answer
1 Product XXX Product ZZZ Region I anticipated sales 320000 260000 Region II anticipated sales 180000 140000 Total Anticipated Sale (in Units) 500000 400000 Selling Price per unit $ 6.00 $ 15.00 Total Expected Sale (In $) $ 3,000,000.00 $ 6,000,000.00 Budgeted Sales for the month are $ 9,000,000.00 2 Product XXX Product ZZZ Total Anticipated Sale (in Units) 500000 400000 Opening Inventory 30000 18000 Closing Inventory 34000 17000 Production Required 504000 399000