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?

Question

Quizplus · Accepted Answer

To determine the budgeted production for the year, we need to calculate the total units that need to be produced to meet the projected sales and desired ending inventory.

Total units to be produced = Projected sales + Desired ending inventory - Beginning inventory
Total units to be produced = 78,000 + 6,000 - 6,500 
Total units to be produced = 77,500

Therefore, the answer is choice letter C (77,500).