Answer:
57,750 units
Explanation:
The budgeted production for the year is a factor of the opening inventory balance, the projected sales for the year and the desired closing inventory value. The relation between all items is as shown below;
Opening inventory balance + budgeted production - sales = closing inventory balance
Given projected sales of 57,400 machines for the year. The estimated January 1 inventory is 6,890 units, and the desired December 31 inventory is 7,240 units.
let the budgeted production be k
6,890 + k - 57,400 = 7,240
k = 7,240 + 57,400 - 6,890
k = 57,750 units
The budgeted production for the year is 57,750 units
