Question 21.2: Landon Awards Co. projected sales of 45,000 brass plaques fo...
Landon Awards Co. projected sales of 45,000 brass plaques for 2014. The estimated January 1, 2014, inventory is 3,000 units, and the desired December 31, 2014, inventory is 5,000 units. What is the budgeted production (in units) for 2014?
Expected units to be sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000
Plus desired ending inventory, December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000
Less estimated beginning inventory, January 1, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000
Total units to be produced . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \underline{\underline{47,000}}