Wheeling Company produces and sells bikes. It expects to sell 20,000 bikes in April 2016 and had 1,200 bikes in finished goods inventory at the end of March 2016. Wheeling Company would like to complete operations in April with at least 1,500 completed bikes in inventory. The bikes sell for $100 each. How many bikes would be produced in April 2016?
A) 20,000 bikes
B) 20,300 bikes
C) 19,700 bikes
D) 18,800 bikes

Question

Quizplus · Accepted Answer

Wheeling Company wants to have at least 1,500 completed bikes at the end of April. Since they already have 1,200 bikes in finished goods inventory, they need to produce an additional 300 bikes. 
Total bikes needed = 20,000 (expected sales) + 300 (ending inventory) = 20,300 
Therefore, the company needs to produce 20,300 bikes in April 2016, which is option B.

Wheeling Company Produces and Sells Bikes