Price, Inc., bottles and distributes mineral water from the company\'s natural s

Question

Price, Inc., bottles and distributes mineral water from the company's natural springs in northern Oregon. Price markets two products: 12- ounce disposable plastic bottles and 1-gallon reusable plastic containers. Read the requirements. Requirement 1. For 2018, Price marketing managers project monthly sales of 460,000 12-ounce bottles and 170,000 1-gallon containers. Average selling prices are estimated at $0.75 per 12-ounce bottle and $1.20 per 1-gallon container. Prepare a revenues budget for Price, Inc., for the year ending December 31,2018. Revenues Budget For Year Ending December 31,2018 Units Price Total 12-oz. bottles 1-gallon containers Budgeted revenues

Explanation / Answer

Solution 1:

Solution 2:

Solution 3:

Beginning inventory for one gallon container = Budgeted sales units + Desired ending inventory - Budgeted production units

= 2040000 + 300000 - 1500000 = 840000 units

Price Inc. Revenues Budget For the year ended December 31, 2018 Particulars Units Price Total 12-Oz. Bottle 5520000 $0.75 $4,140,000.00 1 Gallon container 2040000 $1.20 $2,448,000.00 Budgeted revenues $6,588,000.00

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