Preset, INC. projected sales of 75,000 bicycles for the year. The estimated January 1 inventory is 5,000 units, and the desired December 31 inventory is 8,000 units. What is the budgeted production (in units) for the year?
Projected sales=Beginning inventory+Budgeted production-Ending inventory
75,000=5000+Budgeted production-8000
Budgeted production=(75,000+8000-5000)
=78,000 bicycles.
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