Projected sales for Peck, Inc., for next year and beginning and ending inventory

Question

Projected sales for Peck, Inc., for next year and beginning and ending inventory data: Sales 100,000 units Beginning Inventory 120,000 units Targeted Ending. Inv. 300,000 units The selling price is $10 per unit. Each unit requires 5 pounds of material, which costs $2 per pound. The beginning inventory of raw materials is 10,000 pounds. The company wants to have 9,000 pounds of material in inventory at the end of the year. Budgeted sales would be _____. a. $ 1,100,000 b. $ 960,000 c. $ 1,200,000 d. $ 1,000,000

Explanation / Answer

Budgeted sales = 100,000 units * $10 per unit         = $1,000,000

Option d

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