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18 May, 12:42

Motorcycle Manufacturers, Inc. projected sales of 58,900 machines for the year. The estimated January 1 inventory is 6,090 units, and the desired December 31 inventory is 7,310 units. What is the budgeted production (in units) for the year?

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  1. 18 May, 13:03
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    60,120 units

    Explanation:

    The computation of the production units is shown below:

    Production units = Projected sales units + ending inventory units - beginning inventory units

    = 58,900 machines + 7,310 units - 6,090 units

    = 60,120 units

    We simply added the ending inventory units and deduct the beginning inventory units to the projected sales units so that the correct amount could come
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