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Production budget PE 6-2A EE 6-2 a 238 OBJ. 4 MyLife Chronicles Inc. projected sales of 240,000 diaries for 2016. The estimat

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SOLUTION:
CALCULATION OF PRODUCTION BUDGET (UNITS) FOR THE YEAR 2016
PARTICULARS UNITS
Budgeted Sales for the year 2016 =                      2,40,000 Diaries
Add: Desired Decemer 31, 2016 inventory                          18,800 Diaries
Total Requirement                      2,58,800 Diaries
Less: Inventory at the January 01,2016                          19,900 Diaries
Production Required for the year                      2,38,900 Diaries
Answer = Budgeted Production (in units) for 2016 = 238,900 Diaries
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