Price Inc bottles and distributes mineral water from the com

Price, Inc., bottles and distributes mineral water from the company\'s natural springs in northern Oregon. Price markets two products: 12- ounce disposable plastic bottles and 1-gallon reusable plastic containers. Read the requirements. Requirement 1. For 2018, Price marketing managers project monthly sales of 460,000 12-ounce bottles and 170,000 1-gallon containers. Average selling prices are estimated at $0.75 per 12-ounce bottle and $1.20 per 1-gallon container. Prepare a revenues budget for Price, Inc., for the year ending December 31,2018. Revenues Budget For Year Ending December 31,2018 Units Price Total 12-oz. bottles 1-gallon containers Budgeted revenues

Solution

Solution 1:

Solution 2:

Solution 3:

Beginning inventory for one gallon container = Budgeted sales units + Desired ending inventory - Budgeted production units

= 2040000 + 300000 - 1500000 = 840000 units

Price Inc.
Revenues Budget
For the year ended December 31, 2018
Particulars	Units	Price	Total
12-Oz. Bottle	5520000	$0.75	$4,140,000.00
1 Gallon container	2040000	$1.20	$2,448,000.00
Budgeted revenues			$6,588,000.00