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Use the information below for Flushing Company to answer the question that follow. Below is budgeted production and sales information for Flushing Company for the month of December. Product XXX Product ZZZ Estimated beginning inventory 31,000 units 16,700 units Desired ending inventory 36,800 units 14,800 units Region I, anticipated sales 326,000 units 268,000 units Region II, anticipated sales 181,000 units 149,000 units The unit selling price for product XXX is $4 and for product ZZZ is $14. Budgeted sales for the month are a.$7,866,000 b.$12,936,000 c.$3,696,000 d.$8,766,000

Respuesta :

Answer:

a. $7,866,000

Explanation:

The computation of Budgeted sales for the month is shown below:-

Budgeted sales = (Region I, anticipated sales + Region II, anticipated sales) × Selling price for product XXX + (Region I, anticipated sales + Region II, anticipated sales) × selling price for product ZZZ

= (326,000 + 181,000) × $4 + (268,000 + 149,000) × $14

= 507,000 × $4 + 417,000 × $14

= $2,028,000 + $5,838,000

= $7,866,000

So, for computing the budgeted sales we simply applied the above formula.

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