Solved: The companys policy is to maintain a bike inventory of 5, Accounting Basics

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The companys policy is to maintain a bike inventory of 5

Question - Mountain High makes and sells specialty mountain bikes. On June 30, the company had 50 bikes in finished goods inventory.

The company's policy is to maintain a bike inventory of 5 percent of the next month's sales. The company expects the following sales activity for the third quarter of the year:

July - 1,200 bikes

August - 1,000 bikes

September - 900 bikes

Required - What is the projected production for August?

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Accounting Basics: The companys policy is to maintain a bike inventory of 5

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