Question

Below is budgeted production and sales information for Flushing Company for the month of December. Product XXX Product ZZZ Estimated beginning inventory 29,000 units 18,500 units Desired ending inventory 34,800 units 15,100 units Region I, anticipated sales 344,000 units 273,000 units Region II, anticipated sales 192,000 units 143,000 units The unit selling price for product XXX is $5 and for product ZZZ is $16. Budgeted production for product ZZZ during the month is a.416,000 units b.412,600 units c.599,800 units d.431,100 units

Answer 1

Answer:

The correct option is b.412,600 units.

Explanation:

Given:

                                                            Product XXX           Product ZZZ

Estimated beginning inventory          29,000 units            18,500 units

Desired ending inventory                    34,800 units            15,100 units

Region I, anticipated sales                344,000 units          273,000 units

Region II, anticipated sales               192,000 units           143,000 units

Therefore, we have:

Estimated beginning inventory for product ZZZ = 18,500 Units

Desired ending inventory for product ZZZ = 15,100 Units

Total anticipated sale at regions I and II= Region I, anticipated sales + Region II, anticipated sales = 273,000 + 143,000 = 416,000 units

Budgeted production for product ZZZ during the month = Total anticipated sale at regions I and II + Desired ending inventory for product ZZZ - Estimated beginning inventory for product ZZZ = 416,000 + 15,100 - 18,500 = 412,600 units

Therefore, the correct option is b.412,600 units.