Question

Below is budgeted production and sales information for Flushing Company for the month of December: Product XXX Product ZZZ Estimated beginning inventory 32,000 units 20,000 units Desired ending inventory 34,000 units 17,000 units Region I, anticipated sales 320,000 units 260,000 units Region II, anticipated sales 180,000 units 140,000 units The unit selling price for product XXX is $5 and for product ZZZ is $15. Budgeted production for product XXX during the month is a. 566,000 units b. 502,000 units c. 498,000 units d. 534,000 units

Answer 1

Answer:

b. 502,000 units

Explanation:

-                               X

Desired Ending              34,000

R1                                    320,000

R2                                     180,000

Beginning                    (32,000)

Production Budget  502,000

$Beginning Inventory + Production = Ending Inventory + Sales$

32,000 + P = 34,000 + (320,000 + 180,000)

34,000 + 320,000 + 180,000 - 32,000 = 502,000 = Production