Question

"Motorcycle Manufacturers, Inc. projected sales of 76,000 machines for 2010. The estimated January 1, 2010, inventory is 6,500 units, and the desired December 31, 2010, inventory is 7,000 units. What is the budgeted production (in units) for 2010

Answer 1

76,500

Step-by-step explanation:

The movement in the balance of inventory (machines in this case) at the start and end of a period is as a result of sales and production. While sales reduces the balance in inventory, production increases the balance.

This may be expressed mathematically as

Opening balance + production - units sold = closing balance

Let the production in units be g

6500 + g - 76,000 = 7,000

g = 7,000 + 76,000 - 6,500

= 76,500

Answer 2

Production= 76,500

Step-by-step explanation:

Giving the following information:

Motorcycle Manufacturers, Inc. projected sales of 76,000 machines for 2010. The estimated January 1, 2010, inventory is 6,500 units, and the desired December 31, 2010, inventory is 7,000 units.

We need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 76,000 + 7,000 - 6,500

Production= 76,500