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TraderCycles manufactures chainless bicycles. On March 31, Trader Cycles had102 bikes in inventory. The company has a policy that the ending inventory in any month

TraderCycles manufactures chainless bicycles. On March 31, Trader Cycles had102 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.TraderCycles expect to sell the following number of bikes in each of next four months:

April. . . . . . . . . . . . . . . . . . . .

1,020 bikes

May. . . . . . . . . . . . . . . . . . . .

1,150 bikes

June. . . . . . . . . . . . . . . . . . . .

1,360 bikes

July. . . . . . . . . . . . . . . . . . . .

1,260 bikes

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

1,020

1,150

1,360

3,530

Unit sales

Plus: Desired ending inventory

Total needed

Less: Beginning inventory

Units to produce

April. . . . . . . . . . . . . . . . . . . .

1,020 bikes

May. . . . . . . . . . . . . . . . . . . .

1,150 bikes

June. . . . . . . . . . . . . . . . . . . .

1,360 bikes

July. . . . . . . . . . . . . . . . . . . .

1,260 bikes

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