Below is budgeted production and sales information for Octofic Cans, Inc. for th

Question

Below is budgeted production and sales information for Octofic Cans, Inc. for the month of March: Estimated beginning inventory Desired ending inventory Region I, anticipated sales Region II, anticipated sales Aluminum 12,000 units 15,000 units 380,000 units 125,000 units Tin 6,000 units 4,000 units 85,000 units 25,000 units The unit selling price for aluminum cans is $0.15 and for tin cans is $0.20. Budgeted production for aluminu m cans during the month is: O a. 508,000 units. Ob. 502,000 units. Oc. 532,000 units. Od. 383,000 units.

Explanation / Answer

Correct option a. 508,000 units

Particulars Units a Desired ending Inventory          15,000 b Region 1, antipicated sales       380,000 c Region 2, antipicated sales       125,000 d Total Required products (a+b+c)       520,000 e Less : Estimated Beginning inventory       (12,000) f Budgeted production (d-e)       508,000

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