Nichols Cycles manufactures chainless bicycles. On March 31, Nichols Cycles had 100 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. Nichols Cycles expects to sell the following number of bikes in each of the next four months:

April …………………………………………………………………………………………….. 1,000 bikes

May ……………………………………………………………………………………………… 1,170 bikes

June …………………………………………………………………………………………….. 1,360 bikes

July ……………………………………………………………………………………………… 1,250 bikes

Prepare a production budget for the second quarter, with a column for each month and for the quarter.



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