In: Accounting
Below 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:
a. $97,550.
b. $82,750.
c. $81,550.
d. $123,000.
Working |
Aluminum |
Tin |
|
Budgeted Sales units: |
|||
A |
Region 1 |
380,000 |
85,000 |
B |
Region 2 |
125,000 |
25,000 |
C = A+B |
Total Sales |
505,000 |
110,000 |
D |
Selling price per unit |
$ 0.15 |
$ 0.20 |
E=C x D |
Budgeted Sales |
$ 75,750.00 |
$ 22,000.00 |
Budgeted Sales:[calculated above] |
|
Aluminium |
$ 75,750.00 |
Tin |
$ 22,000.00 |
Total Budgeted Sales for month |
$ 97,750.00 [ANSWER] |
*There are no option matching with above figure calculated. |
|
Correct Answer |
Option 'a': $ 97,550 |