What would be the sales budget


Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as follows:

January 40,000
February 50,000
March 60,000

Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 percent of the futons are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The planned selling price is $150 per unit. What would be the sales budget for March?

a. $6,750,000

b. $8,000,000

c. $7,200,000

d. $9,000,000

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Accounting Basics: What would be the sales budget
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