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 production for tin cans during the month is:
A) 108,000 units.
B) 83,000 units.
C) 112,000 units.
D) 120,000 units.

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 production for tin cans during the month is:
A) 108,000 units.
B) 83,000 units.
C) 112,000 units.
D) 120,000 units.

Quizplus · Accepted Answer

Budgeted sales of tin cans = 85,000 units + 25,000 units = 110,000 units.Desired ending inventory of tin cans = 4,000 units.Therefore, budgeted production of tin cans = 110,000 units + 4,000 units - 6,000 units = 108,000 units.

Below Is Budgeted Production and Sales Information for Octofic Cans