Trent Cycles manufactures chainless bicycles. On March 31, Trent Cycles had 318 bikes in inventory. The company's policy is that the ending inventory in any month must be 30% of the following month's expected sales. Trent Cycles expects to sell the following number of bikes in each of next 4 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.
Trent Cycles
Production Budget
For the Quarter ended June 30
Data table
Month
April
May
June
2nd Quarter
April
1,060 bikes
Unit sales
1,110
1,320
May
1,110 bikes
333
396
402
June
1,320 bikes
Plus: Desired ending inventory
Total needed
1,506
1,722
July
1,340 bikes
(318)
(333)
(396)
Less: Beginning inventory
Units to produce
1,173
1,326
Print
Done
- X