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9 January, 06:11

Motorcycle Manufacturers, Inc., projected sales of 54,500 machines for the year. The estimated January 1 inventory is 6,860 units, and the desired December 31 inventory is 7,420 units. The budgeted production for the year is ___.

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  1. 9 January, 06:22
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    55,060 machines

    Explanation:

    Projected sales = 54,500

    Estimated opening balance = 6,860

    Desired ending balance = 7,420

    Budgeted production = ?

    Let the budgeted production be B

    Using the formula

    Opening balance + Budgeted production - Sales = Closing balance

    6,860 + B - 54,500 = 7,420

    B = 7,420 + 54,500 - 6,860

    B = 55,060

    The budgeted production for the year is 55,060 machines.
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