Based on the following production and sales data of Frixion Co. for March of the current year, prepare (a) a sales budget and (b) a production budget.
Product T
Product X
Estimated inventory, March 128,000 units
20,000 units
Desired inventory, March 3132,000 units
15,000 units
Expected sales volume: Territory I320,000 units
260,000 units
Territory II190,000 units
130,000 units
Unit sales price$6
$14
What will be an ideal response?
a.
| Frixion Co. Sales Budget For the Month Ending March 31 | |||
Product and Territory | Unit Sales Volume | Unit Selling Price | ?Total Sales |
| Product T: | |||
| Territory I | 320,000 | $ 6 | $1,920,000 |
| Territory II | 190,000 | 6 | 1,140,000 |
| Total | 510,000 | $3,060,000 | |
| Product X: | |||
| Territory I | 260,000 | $14 | $3,640,000 |
| Territory II | 130,000 | 14 | 1,820,000 |
| Total | 390,000 | $5,460,000 | |
| Total revenue from sales | $8,520,000 | ||
| Frixion Co. Production Budget For the Month Ending March 31 | ||
| Product T | Product X | |
| Sales (units) | 510,000 | 390,000 |
| Desired ending inventory, March 31 | ? 32,000 | ? 15,000 |
| Total (units) available | 542,000 | 405,000 |
| Estimated beginning inventory, March 1 | ? (28,000) | ? (20,000) |
| Total units to be produced | 514,000 | 385,000 |
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