Answer:
Expected units to be sold………………………………………………………………… 75,000
Plus desired ending inventory, December 31, 2014………………………………… 2,700
Total…………………………………………………………………………………………… 77,700
Less estimated beginning inventory, January 1, 2014……………………………… 3,500
Total units to be produced………………………………………………………………… 74,200
LifeTyme Publishers Inc. projected sales of 190,000 diaries for 2014. The estimated January 1, 2014, inventory is 18,400 units, and the desired December 31, 2014, inventory is 20,300 units. What is the budgeted production (in units) for 2014?
Answer:
Expected units to be sold…………………………………………………………………
190,000
Plus desired ending inventory, December 31, 2014………………………………… 20,300
Total…………………………………………………………………………………………… 210,300
Less estimated beginning inventory, January 1, 2014……………………………… 18,400
Total units to be produced………………………………………………………………… 191,900
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