Question

Becker bikes manufactures tricycles. the company expects to sell 430 units in may and 560 units in june. beginning and ending finished goods for may are expected to be 135 and 100 units, respectively. june’s ending finished goods are expected to be 110 units.

Answer 1

Becker Bikes must produce 395 tricycles in May and 570 in June, factoring in the expected sales and the desired beginning and ending inventory levels for each month.

Step-by-step explanation:

The student's question pertains to the calculation of required production numbers. Becker Bikes needs to calculate how many tricycles it must produce in May and June taking into account expected sales and desired inventory levels. To solve this for May, we begin with the expected sales of 430 units, add the desired ending inventory of 100 units, and subtract the beginning inventory of 135 units. This results in a production need of 395 units for May. For June, the calculation would factor in the expected sales of 560 units, the desired ending inventory of 110 units, and the beginning inventory, which would be May's ending inventory, or 100 units, resulting in a production requirement of 570 units for June.