Question

BudgetEast Mountain Bike expects to sell 25,000 electronic bicycles next year. The management estimates that the beginning and ending inventory will be 2,000 units and 3,500 units, respectively.Required: Prepare a production budget for next year.

Answer 1

Production= 26,500

Step-by-step explanation:

Giving the following information:

Sales= 25,000 electronic bicycles

Beginning inventory= 2,000

Ending inventroy= 3,500

To calculate the production required, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 25,000 + 3,500 - 2,000

Production= 26,500