Question
Trainor Cycles manufactures chainless bicycles. On March31, Trainor Cycles had 214 bikes in inventory. The company has a policy that the ending inventory in any
Trainor Cycles manufactures chainless bicycles. On March31, Trainor Cycles had 214
bikes in inventory. The company has a policy that the ending inventory in any month must be 20%
of the followingmonth's expected sales. Trainor Cycles expects to sell the following number of bikes in each of next fourmonths:
April. . . . . . . . . . . . . . . . . .
1,070 bikes
May. . . . . . . . . . . . . . . . . .
1,150 bikes
June. . . . . . . . . . . . . . . . .
1,380 bikes
July. . . . . . . . . . . . . . . . . .
1,220 bikes
What would a production budget for the secondquarter, with a column for each month and for the quarter look like?
Trainor Cycles
Production Budget
For the Months of April through June
April May June Quarter
Unit sales: ________________________
Plus: Desired ending inventory: __________________________
Total needed: ____________________________
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