Question

Calculator Motorcycle Manufacturers, Inc., projected sales of 54,600 machines for the year. The estimated January 1 inventory is 6,610 units, and the desired December 31 inventory is 7,360 units. The budgeted production for the year is a.54,600 b.55,350 c.40,630 d.53,850

Answer 1

Answer:

b.55,350

Explanation:

The movement in number of finished goods between the beginning and end of a period is due to the number of goods sold and number of goods produced.

While the number sold reduces the account balance, while the number produced increases it. This may be expressed mathematically as;

Opening balance + number of goods produced - number of goods sold= closing balance

let the budgeted production be J

6610 + J - 54,600 = 7,360

J = 7,360 + 54,600 - 6610

= 55,350