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BudgetEast Mountain Bike expects to sell 25,000 electronic bicycles next year. The management estimates that the beginning and ending inventory will be 2,000 units and 3,500 units, respectively.Required: Prepare a production budget for next year.

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facundobuzzetti

Answer:

Production= 26,500

Explanation:

Giving the following information:

Sales= 25,000 electronic bicycles

Beginning inventory= 2,000

Ending inventroy= 3,500

To calculate the production required, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

Production= 25,000 + 3,500 - 2,000

Production= 26,500

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