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14 April, 08:31

Motorcycle Manufacturers, Inc. projected sales of 51,800 machines for the year. The estimated January 1 inventory is 6,930 units, and the desired December 31 inventory is 7,340 units. What is the budgeted production (in units) for the year?

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  1. 14 April, 08:42
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    52,210 units

    Explanation:

    Given that,

    Projected sales = 51,800 machines

    Estimated beginning inventory = 6,930 units

    Desired ending inventory = 7,340 units

    Sales = Beginning inventory + Production - Ending inventory

    51,800 units = 6,930 units + Production - 7,340 units

    51,800 units = Production - 410 units

    51,800 units + 410 units = Production

    52,210 units = Production

    Therefore, the budgeted production (in units) for the year is 52,210.
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