Question

Motorcycle Manufacturers, Inc. projected sales of 58,900 machines for the year. The estimated January 1 inventory is 6,090 units, and the desired December 31 inventory is 7,310 units. What is the budgeted production (in units) for the year?

Answer 1

60,120 units

Step-by-step explanation:

The computation of the production units is shown below:

Production units = Projected sales units + ending inventory units - beginning inventory units

= 58,900 machines + 7,310 units - 6,090 units

= 60,120 units

We simply added the ending inventory units and deduct the beginning inventory units to the projected sales units so that the correct amount could come