Motorcycle Manufacturers, Inc. projected sales of 57,500 machines for the year.
ID: 2535265 • Letter: M
Question
Motorcycle Manufacturers, Inc. projected sales of 57,500 machines for the year. The estimated January 1 inventory is 6,750 units, and the desired December 31 inventory is 7,130 units. What is the budgeted production (in units) for the year?
a. 57,880
b. 57,500
c. 43,620
d. 57,120
Below is budgeted production and sales information for Flushing Company for the month of December:
The unit selling price for product XXX is $4 and for product ZZZ is $14.
Budgeted sales for the month are
a.$7,830,000
b.$9,000,000
c.$13,090,000
d.$3,740,000
Product XXX Product ZZZ Estimated beginning inventory 28,600 units 16,800 units Desired ending inventory 35,500 units 14,500 units Region I, anticipated sales 339,000 units 263,000 units Region II, anticipated sales 187,000 units 146,000 unitsExplanation / Answer
1) Budgeted Production (in units) = Budgeted Sales in units+Desired Ending Inventory-Beginning Inventory
= 57,500+7,130-6,750 = 57,880 units
Therefore, the budgeted production (in units) for the year is 57,880 units. Hence the correct option is a) 57,880.
2) Total Sales in units for Product XXX = Region 1 Sales+Region 2 Sales
= 339,000 units+187,000 units = 526,000 units
Sales Value of Product XXX = 526,000 units*$4 per unit = $2,104,000
Total Sales in units for Product ZZZ = Region 1 Sales+Region 2 Sales
= 263,000 units+146,000 units = 409,000 units
Sales Value of Product ZZZ = 409,000 units*$14 per unit = $5,726,000
Budgeted Sales for the month = Sales Value of Product XXX+Sales Value of Product ZZZ
= $2,104,000+$5,726,000 = $7,830,000
Therefore, the budgeted sales for the month is $7,830,000. Hence the correct option is a) $7,830,000.
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