What is the budgeted production (in units) for 20Y6?

Daybook Inc. projected sales of 400,000 personal journals for 20Y6. The estimated January 1, 20Y6, inventory is 20,000 units, and the desired December 31, 20Y6, inventory is 23,500 units. What is the budgeted production (in units) for 20Y6?

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Expert Solution

Production Budget : A company's production budget outlines the number of units it needs generate to satisfy its sales and inventory targets.

Calculation of Budgeted production units for 20Y6

Daybook Inc

Production Budget

For the year ending December 31,20Y6

Particulars	Units
Expected units to be sold	400,000
Add : Desired ending inventory ,December 31,20Y6	23,500
Total units required	423,500
Less : Estimated beginning inventory,January 1,20Y6	20,000
Total units to be produced	403,500

Therefore,the budgeted production units for 20Y6 is 403,500

balaji rao answered 1 year ago

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