Question

The following budgeted production and sales information is for Flushing Company for the month of December:

Line Item Description Product XXX Product ZZZ
Estimated beginning inventory 28,200 units 16,600 units
Desired ending inventory 36,800 units 15,500 units
Region I, anticipated sales 326,000 units 273,000 units
Region II, anticipated sales 192,000 units 144,000 units
The unit selling price for product XXX is $5 and for product ZZZ is $16.
Budgeted production for product ZZZ during the month is

Answer 1

The budgeted production for product ZZZ during the month is 415,900 units.

To calculate the budgeted production for product ZZZ, we can use the following formula:

Budgeted Production = Desired Ending Inventory + Region I Sales + Region II Sales - Estimated Beginning Inventory

Here's how to apply it to the given information:

Desired Ending Inventory: 15,500 units

Region I Sales: 273,000 units

Region II Sales: 144,000 units

Estimated Beginning Inventory: 16,600 units

Plugging these values into the formula:

Budgeted Production = 15,500 units + 273,000 units + 144,000 units - 16,600 units

Budgeted Production = 415,900 units

Therefore, the budgeted production for product ZZZ during the month is 415,900 units.