Based on the following production and sale data of RIght Stop for March of the c
ID: 2382308 • Letter: B
Question
Based on the following production and sale data of RIght Stop for March of the current year, prepare (a) a sales budget and (b) a production budget.
Product T Product X
Estimated inventory, March 1 28,000 units 20,000 units
Desired inventory, March 1 32,000 units 15,000 units
Expected sales volume:
Area I 320,000 units 260,000 units
Area II 190,000 units 130,000 units
Unit sale price $6. $14.
Explanation / Answer
a) Sales Budget Product T Product X Expected sales volume: Area I 320000 260000 Area II 190000 130000 Total Expected sales volume: 510000 390000 Unit Sale price $6 $14 Total Sale Value $3,060,000 $5,460,000 b) Production Budget Product T Product X Total Expected sales volume: 510000 390000 Add: Desired Ending inventory 32000 15000 Total Need 542000 405000 Less: Estimated Beginning Inventory 28000 20000 Production Required 514000 385000
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