Question

Motorcycle Manufacturers, Inc. projected sales of 51,100 machines for the year. The estimated January 1 inventory is 6,460 units, and the desired December 31 inventory is 7,130 units. What is the budgeted production (in units) for the year

Answer 1

51,770 units

Step-by-step explanation:

With regards to the above, the budgeted production (in unit) for the year is computed as;

= Sales - Beginning inventory + Ending inventory

Given that ;

Sales = 51,100

Beginning inventory = 6,460

Ending inventory = 7,130

Budgeted production in units for the year = 51,100 - 6,460 + 7,130 = 51,770 units