Answer
Trays Budgeted for Production = 208,000 + 27,000 - 18,000 = 217,000 trays
Work Step by Step
To calculate the number of trays budgeted for production in 2015, use the following formula:
Trays Budgeted for Production = Expected Sales + Target Ending Inventory - Beginning Inventory
Trays Budgeted for Production = 208,000 (expected sales) + 27,000 (target ending inventory) - 18,000 (beginning inventory)
So, the number of trays budgeted for production in 2015 is 217,000 trays.