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. The budgeted production for the year is

Question

Quizplus · Accepted Answer

To calculate the budgeted production, add the desired end inventory to the projected sales and subtract the beginning inventory: 78,000 (projected sales) + 6,000 (desired end inventory) - 6,500 (beginning inventory) = 77,500 units.