Below is budgeted production and sales information for Octofic Cans, Inc.for the month of March: $$\begin{array} { l l l }
& { \text { Aluminum } } & { \text { Tin } } \
\text { Estimated beginning inventory } & 12,000 \text { units } & 6,000 \text { units } \
\text { Desired ending inventory } & 15,000 \text { units } & 4,000 \text { units } \
\text { Region I, anticipated sales } & 380,000 \text { units } & 85,000 \text { units } \
\text { Region II, anticipated sales } & 125,000 \text { units } & 25,000 \text { units }
\end{array}$$ ? 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) $123,000.
C) $82,750.
D) $81,550.

Question

Below is budgeted production and sales information for Octofic Cans, Inc.for the month of March: $$\begin{array} { l l l } 
&  { \text { Aluminum } } & { \text { Tin } } \
\text { Estimated beginning inventory } & 12,000 \text { units } & 6,000 \text { units } \
\text { Desired ending inventory } & 15,000 \text { units } & 4,000 \text { units } \
\text { Region I, anticipated sales } & 380,000 \text { units } & 85,000 \text { units } \
\text { Region II, anticipated sales } & 125,000 \text { units } & 25,000 \text { units }
\end{array}$$ ? 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) $123,000.
C) $82,750.
D) $81,550.

Quizplus · Accepted Answer

Budgeted sales for aluminum cans = 380,000 units * $0.15 = $57,000Budgeted sales for tin cans = 85,000 units * $0.20 + 25,000 units * $0.20 = $22,000 + $5,000 = $27,000Total budgeted sales = $57,000 + $27,000 = $84,000

Below Is Budgeted Production and Sales Information for Octofic Cans