Ask Question
Today, 06:50

Motorcycle Manufacturers, Inc., projected sales of 57,400 machines for the year. The estimated January 1 inventory is 6,890 units, and the desired December 31 inventory is 7,240 units. The budgeted production for the year is?

+2
Answers (1)
  1. Today, 07:06
    0
    57,750 units

    Explanation:

    The budgeted production for the year is a factor of the opening inventory balance, the projected sales for the year and the desired closing inventory value. The relation between all items is as shown below;

    Opening inventory balance + budgeted production - sales = closing inventory balance

    Given projected sales of 57,400 machines for the year. The estimated January 1 inventory is 6,890 units, and the desired December 31 inventory is 7,240 units.

    let the budgeted production be k

    6,890 + k - 57,400 = 7,240

    k = 7,240 + 57,400 - 6,890

    k = 57,750 units

    The budgeted production for the year is 57,750 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Motorcycle Manufacturers, Inc., projected sales of 57,400 machines for the year. The estimated January 1 inventory is 6,890 units, and the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers