Question

Osprey Cycles, Inc. projected sales of 68,945 bicycles for the year. The estimated January 1 inventory is 6,285 units, and the desired December 31 inventory is 6,180 units. What is the budgeted production (in units) for the year

Answer 1

Answer:

Production= 68,840 units

Explanation:

Giving the following information:

Sales= 68,945 units

Beginning inventory= 6,285 units

Ending inventory= 6,180 units

To calculate the production for the period, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 68,945 + 6,180 - 6,285

Production= 68,840 units