Below is budgeted production and sales information for Flushing Company for the

Question

Below is budgeted production and sales information for Flushing Company for the month of December: Estimated beginning inventory Desired ending inventory Region I, anticipated sales Region II, anticipated sales Product XXX 32,000 units 34,000 units 320,000 units 180,000 units Product ZZZ 20,000 units 17,000 units 260,000 units 140,000 units The unit selling price for product XXX is $5 and for product zzZ is $15. Budgeted production for product ZZZ during the month is Sa. 380,000 units Ob. 403,000 units Oc. 397,000 units Od. 417,000 units

Explanation / Answer

Production units = Sales unit+desired ending inventory-beginning inventory

= (260000+140000)+17000-20000

Production units = 397000

so answer is c) 397,000 units

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