Below Is Budgeted Production and Sales Information for Octofic Cans

question 8

Multiple Choice

Below is budgeted production and sales information for Octofic Cans, Inc.for the month of March: $$\begin{array} { l l l } & { \text { Aluminum } } & { \text { Tin } } \\\text { Estimated beginning inventory } & 12,000 \text { units } & 6,000 \text { units } \\\text { Desired ending inventory } & 15,000 \text { units } & 4,000 \text { units } \\\text { Region I, anticipated sales } & 380,000 \text { units } & 85,000 \text { units } \\\text { Region II, anticipated sales } & 125,000 \text { units } & 25,000 \text { units }\end{array}$$ ? The unit selling price for aluminum cans is $0.15 and for tin cans is $0.20.
Budgeted production for aluminum cans during the month is:

• A) 383,000 units.
• B) 508,000 units.
• C) 502,000 units.
• D) 532,000 units.

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Definitions:

Common Stock

Equity securities that represent ownership shares in a corporation, giving holders voting rights and potential dividends but with no fixed dividend rate.

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis, as a reward for investing in the company.

Convertible Preferred Stock

A type of preferred stock that gives holders the option to convert their preferred shares into a fixed number of common shares, generally after a predetermined date.

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and the potential for dividend payments.