Amy Company produces and sells bikes.It expects to sell 15,000 bikes in March 2011 and had 1,200 bikes in finished goods inventory at the end of February 2011.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 2011?

Question

Amy Company produces and sells bikes.It expects to sell 15,000 bikes in March 2011 and had 1,200 bikes in finished goods inventory at the end of February 2011.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 2011?

Quizplus · Accepted Answer

To determine the number of bikes to be produced, calculate the desired ending inventory plus expected sales, minus the beginning inventory: (1,500 desired ending inventory + 15,000 expected sales - 1,200 beginning inventory) = 15,300 bikes.

Amy Company Produces and Sells Bikes