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Use the information below for Bluebird Company to answer the question that follow. Below is the...

  1. Use the information below for Bluebird Company to answer the question that follow.

    Below is the budgeted production and sales information for Bluebird Company for the month of December.
    Product XXX Product ZZZ
    Estimated beginning inventory 30,000 units 18,000 units
    Desired ending inventory 32,000 units 15,000 units
    Anticipated sales 520,000 units 460,000 units

    The unit selling price for product XXX is $5 and for product ZZZ is $14.

    Budgeted production for product ZZZ during the month is

    a.457,000 units

    b.463,000 units

    c.475,000 units

    d.460,000 units

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Answer #1

Budgeted production

= Estimated sales + Desired ending inventory - Beginning inventory

= 460,000 + 15,000 - 18,000

= 457,000

Option A

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