Trader Cycles manufactures chainless bicycles. On March 31, Trader Cycles had 103 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. Trader Cycles expects to sell the following number of bikes in each of next four months: April. . . . . . . . . . . . . . . . . 1,030 bikes May. . . . . . . . . . . . . . . . . . 1,140 bikes June. . . . . . . . . . . . . . . . . 1,330 bikes July. . . . . . . . . . . . . . . . . . 1,240 bikes Prepare a production budget for the second quarter, with a column for each month and for the quarter.
Trader Cycles manufactures chainless bicycles. On March 31, Trader Cycles had 103 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. Trader Cycles expects to sell the following number of bikes in each of next four months: April. . . . . . . . . . . . . . . . . 1,030 bikes May. . . . . . . . . . . . . . . . . . 1,140 bikes June. . . . . . . . . . . . . . . . . 1,330 bikes July. . . . . . . . . . . . . . . . . . 1,240 bikes Prepare a production budget for the second quarter, with a column for each month and for the quarter.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Trader Cycles manufactures chainless bicycles. On March 31, Trader Cycles had 103 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.
Trader Cycles expects to sell the following number of bikes in each of next four months:
April. . . . . . . . . . . . . . . . .
|
1,030 bikes
|
---|---|
May. . . . . . . . . . . . . . . . . .
|
1,140 bikes
|
June. . . . . . . . . . . . . . . . .
|
1,330 bikes
|
July. . . . . . . . . . . . . . . . . .
|
1,240 bikes
|
Prepare a production budget for the second quarter, with a column for each month and for the quarter.
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