Question

The following is budgeted production and sales information for Octofic Cans, Inc. for the month of March: Aluminum Tin Estimated beginning inventory 12,000 units 6,000 units Desired ending inventory 15,000 units 4,000 units Region I, anticipated sales 380,000 units 85,000 units Region II, anticipated sales 125,000 units 25,000 units The unit selling price for aluminum cans is $0.15 and for tin cans is $0.20. Budgeted sales for the month are _____

Answer 1

Answer: $97750

Explanation:

Aluminum:

Region I, anticipated sales = 380,000 units

Region II, anticipated sales 125,000 units

Total = 380,000 + 125,000 = 505,000

Selling price per unit = $0.15

Budgeted sales = 505,000 × $0.15 = $75750

Tin:

Region I, anticipated sales = 85,000 units

Region II, anticipated sales = 25,000 units

Total = 85,000 + 25,000 = 110,000

Selling price per unit = $0.20

Budgeted sales = 110,000 × $0.20 = $22,000

Total Budgeted sales for the month will then be:

= $75750 + $22000

= $97750