Production and Sales Estimates for June Are as Follows The Budgeted Total Sales for June Is:
A) $300,000

question 84

Multiple Choice

Production and sales estimates for June are as follows: $\begin{array}{ll}8,000& \text { Estimated inventory (units) , June 1}\\9,000&\text {Desired inventory (unit) , June 30 }\\&\text {Expected sales volume (units) :}\\3,000 & \text { Area X } \\4,000 & \text { AreaY } \\5,500 & \text { Area Z } \\\$ 25 & \text { Unit sales price }\end{array}$
The budgeted total sales for June is:

• A) $300,000.
• B) $337,500.
• C) $312,500.
• D) $287,500.

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Definitions:

Periodic Method

An accounting system where inventory values and cost of goods sold are determined at the end of an accounting period.

Cost of Goods Sold

Costs directly linked to the manufacturing of products sold by a business, encompassing the expenses of materials and labor specifically employed in the product's production.

Gross Profit

The difference between sales revenue and the cost of goods sold before deducting overheads, payroll, taxation, and interest payments.

Periodic Inventory System

An inventory accounting system where stock levels are updated at regular intervals, not continuously.