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Trader Cycles manufactures chainless bicycles. On March 31, Trader Cycles had 309 bikes in inventory. The company has a policy that the ending inventory in
Trader Cycles manufactures chainless bicycles. On March 31, Trader Cycles had 309 bikes in inventory. The company has a policy that the ending inventory in any month must be 30% of the following month's expected sales. Trader Cycles expects to sell the following number of bikes in each of next four months: (Click the icon to view the data) Prepare a production budget for the second quarter, with a column for each month and for the quarter. Trader Cycles Production Budget For the Months of April through June April May June Quarter Unit sales 1,030 1,180 1,330 3,540 Plus: Desired ending 354 399 381 inventory Total needed 1,579 1,711 Less: Beginning 309 inventory Units to produce April...... 1,030 bikes May.... 1,180 bikes June...... .1,330 bikes July.... 1,270 bikes
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