Question

Below is budgeted production and sales information for Flushing Company for the month of December. Product XXX Product ZZZ Estimated beginning inventory 28,500 units 18,500 units Desired ending inventory 35,100 units 14,900 units Region I, anticipated sales 335,000 units 274,000 units Region II, anticipated sales 200,000 units 141,000 units The unit selling price for product XXX is $7 and for product ZZZ is $16. Budgeted production for product XXX during the month is

Answer 1

Answer:

541,600

Explanation:

The computation of Budgeted production for product XXX during the month is shown below:-

Budgeted production for product XXX = Desired ending inventory + Region I, anticipated sales + Region II, anticipated sales - Estimated beginning inventory

= 35,100 + 335,000 + 200,000 - 28,500

= 570,100 - 28,500

= 541,600

So, for computing the Budgeted production for product XXX during the month we simply applied the above formula.