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28 July, 14:40

Future Technologies projected sales of 35,000 computers for this year. The estimated January 1 inventory is 3,000 units, and the desired December 31 inventory is 9,000 units. What is the budgeted production (in units) for the year?

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  1. 28 July, 16:24
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    The budgeted production for the year is 41000 units

    Explanation:

    The budgeted production is the production in units that is expected for the particular period. This is based on an estimate or budget of sales for that particular period and also involves the opening and closing inventory.

    The budgeted production in units can be calculated by calculating the sum of closing inventory and the sales that are expected for the period and deducting the opening inventory.

    Budgeted Production = Closing Inventory + Sales - Opening Inventory

    Budgeted Production = 9000 + 35000 - 3000

    Budgeted Production = 41000 units
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