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Dennis_Churaev [7]
3 years ago
12

18. Callon Industries has projected sales of 67,000 machines for 2012. The estimated January 1, 2012, inventory is 6,000 units,

and the desired December 31, 2012, inventory is 15,000 units. What is the budgeted production (in units) for 2012?
Business
1 answer:
Georgia [21]3 years ago
6 0

Answer:

Production budget = 76, 000 units

Explanation:

<em>The sales budget is adjusted for the projected opening and closing inventories unit to arrive at the production budget: </em>

The production budget can be determined using the formula below

Production budget = Sales budget + closing inventory- opening inventory

Production budget = 67,000 + 15,000 - 6,000

                         = 76000

Production budget = 76, 000 units

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