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 sales for the month are
To calculate the budgeted sales for the month, you need to subtract the estimated beginning inventory from the anticipated sales and add the desired ending inventory.
For Product XXX:
1. Subtract the estimated beginning inventory of 32,000 units from the anticipated sales in Region I of 320,000 units.
320,000 units - 32,000 units = 288,000 units
2. Subtract the estimated beginning inventory of 20,000 units from the anticipated sales in Region II of 180,000 units.
180,000 units - 20,000 units = 160,000 units
3. Add the desired ending inventory of 34,000 units.
288,000 units + 160,000 units + 34,000 units = 482,000 units
Therefore, the budgeted sales for Product XXX for the month are 482,000 units.
For Product ZZZ:
1. Subtract the estimated beginning inventory of 20,000 units from the anticipated sales in Region I of 260,000 units.
260,000 units - 20,000 units = 240,000 units
2. Subtract the estimated beginning inventory of 17,000 units from the anticipated sales in Region II of 140,000 units.
140,000 units - 17,000 units = 123,000 units
3. Add the desired ending inventory of 17,000 units.
240,000 units + 123,000 units + 17,000 units = 380,000 units
Therefore, the budgeted sales for Product ZZZ for the month are 380,000 units.
To calculate the budgeted sales for the month, we need to consider the estimated beginning inventory, desired ending inventory, and anticipated sales for each product.
For Product XXX:
Beginning inventory: 32,000 units
Anticipated sales in Region I: 320,000 units
Anticipated sales in Region II: 180,000 units
Desired ending inventory: 34,000 units
To calculate the budgeted sales for Product XXX:
Budgeted Sales = Beginning Inventory + Anticipated Sales - Desired Ending Inventory
Budgeted Sales = 32,000 + 320,000 + 180,000 -34,000
Budgeted Sales = 498,000 units
For Product ZZZ:
Beginning inventory: 20,000 units
Anticipated sales in Region I: 260,000 units
Anticipated sales in Region II: 140,000 units
Desired ending inventory: 17,000 units
To calculate the budgeted sales for Product ZZZ:
Budgeted Sales = Beginning Inventory + Anticipated Sales - Desired Ending Inventory
Budgeted Sales = 20,000 + 260,000 + 140,000 - 17,000
Budgeted Sales = 403,000 units
Therefore, the budgeted sales for the month are:
Product XXX: 498,000 units
Product ZZZ: 403,000 units