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Motorcycle Manufacturers, Inc. projected sales of 53,100 machines for the year. The estimated January 1 inventory...

Motorcycle Manufacturers, Inc. projected sales of 53,100 machines for the year. The estimated January 1 inventory is 6,730 units, and the desired December 31 inventory is 7,480 units. What is the budgeted production (in units) for the year?

a.53,100

b.52,350

c.53,850

d.38,890

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Answer #1

Answer : D = 38,890

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>> Production units = Sales units + Closing inventory - Beginning inventory.

>> Budgeted production units = 53,100 + 7,480 - 6,730

>> Budgeted production units = 38,890

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