Below is budgeted production and sales information for Flushing Company for the month of December: Product XXX Product ZZZ Estimated beginning inventory 28,700 units 19,300 units Desired ending inventory 34,100 units 14,500 units Region I, anticipated sales 320,000 units 250,000 units Region II, anticipated sales 189,000 units 147,000 units The unit selling price for product XXX is $7 and for product ZZZ is $15. Budgeted production for product XXX during the month is

Production Budget  for Product XXX is    514,400  (units)

Production Budget  for Product ZZZ is  392,200  (units)  

Explanation:

To Calculate the production Budget we use the formula

Sales + desired Ending Inventory - Opening Inventory= Budgeted Production.

Flushing Company

Production Budget

For the month of December

                                                    Product XXX        

                                                              units                                

Region I, anticipated sales                   320,000            

Region II, anticipated sales                  189,000

Total Sales for Product XXX                509,000

Add Desired ending inventory              34,100  

Less Estimated beginning inventory    28,700            

Production Budget (units)                      514,400                            

Flushing Company

Production Budget

For the month of December

                                                         Product ZZZ

                                                                 units

Region I, anticipated sales                  250,000  

Region II, anticipated sales                  147,000

Total Sales for Product ZZZ                397,000

Add Desired ending inventory               14,500

Less Estimated beginning inventory      19,300  

Production Budget (units)                     392,200                    

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