Question

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? Oa. 70,500 b. 77,500 c. 70,000 d. 78,500

Answer 1

Solution:

The correct answer is Option (b). 77,500.

The Budgeted production for the year = Sales - Beginning inventory + Ending inventory

= 78,000 - 6,500 + 6,000

= 77,500.