Question
Cycles manufactures chainless bicycles. On March 31, Tillman Cycles had 106 bikes in inventory. The company has a policy that the ending inventory in any
Cycles manufactures chainless bicycles. On March 31, Tillman Cycles had 106 bikes in inventory. The company has a policy that the ending inventory in any month must be 10% of the following month's expected sales. Tillman Cycles expects to sell the following number of bikes in each of next four months:
April. . . . . . . . . . . . . . . . . . . . | 1,060 bikes |
May. . . . . . . . . . . . . . . . . . . . | 1,140 bikes |
June. . . . . . . . . . . . . . . . . . . . | 1,340 bikes |
July. . . . . . . . . . . . . . . . . . . . . | 1,270 bikes |
Prepare a production budget for the second quarter, with a column for each month and for the quarter.
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