Question

Motorcycle Manufacturers, Inc. projected sales of 53,500 machines for the year. The estimated January 1 inventory is 6,060 units, and the desired December 31 inventory is 7,130 units. What is the budgeted production (in units) for the year? a. 53,500 b. 52,430 c. 40,310 d. 54,570

Answer 1

d. 54,570

Step-by-step explanation:

We are going to make a little change in the inventory formula for a selling business

`$$Beginning + Purchases = Sales + Ending`

In thiws case, because this business manufactures their product it will be:

`$$Beginning + Production = Sales + Ending`

`$$6,060 + Production = 53,500 + 7,130`

Production = 54,570