Question

Motorcycle Manufacturers, Inc. projected sales of 78,000 machines for the year. The estimated January 1 inventory is 6,500 units, and the desired December 31 inventory is 6,000 units. What is the budgeted production (in units) for the year? Oa. 70,500 b. 77,500 c. 70,000 d. 78,500

Answer 1

b. 77,500

Step-by-step explanation:

Budgeted Production is the number of unit that isestimated to produce over a period of time.

Estimated Inventory on January 1 = 6,500

Estimated Inventory on December 31 = 6,500

Ending Invetory = Beginning Inventory + Production - Sales

6,000 units = 6,500 units + Production - 78,000 units

Production = 6,000 units - 6,500 units + 78,000 units

Production = 77,500 units