Answer:
Budgeted Production is obtained by adding Sales to the desired finished goods inventory and subtracting beginning finished goods inventory.We move opposite to get to the budgeted production .
For example if we have $ 300,000 sales and desired ending inventory is $ 50,000 and finished good beginning inventory is $ 25,000 so the budgeted production would be
Budgeted Production = Sales + Desired Ending Inventory - Beginning Inventory
Budgeted Production = $ 300,000 + $ 50,000- $ 25,000= $ 325,000
