Amy Company produces and sells bikes.It expects to sell 15,000 bikes in March and had 1,200 bikes in finished goods inventory at the end of February.Amy Company would like to complete operations in March with at least 1,500 completed bikes in inventory.The bikes sell for $100 each. How many bikes would be produced in March?

Question

Quizplus · Accepted Answer

To determine how many bikes need to be produced in March, we need to consider the desired ending inventory, the beginning inventory, and the expected sales.

Beginning inventory = 1,200 
Expected sales = 15,000 
Desired ending inventory = 1,500

To determine the total number of bikes that need to be produced in March, we can use the following formula:

Total production = Expected sales + Desired ending inventory - Beginning inventory 
Total production = 15,000 + 1,500 - 1,200 
Total production = 15,300

Therefore, Amy Company would need to produce 15,300 bikes in March to meet its desired ending inventory and expected sales. The correct answer is D.

Amy Company Produces and Sells Bikes