1. Revenues, production, and purchase budgets. The Yoshida Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2021 is 915,000 units. Yoshida's target ending inventory is 90,000 units, and its beginning inventory is 95,000 units. The company's budgeted selling price to its distributors and dealers is 405,000 yen (¥) per motorcycle. Yoshida buys all its wheels from an outside supplier. No defective wheels are accepted. (Yoshida's needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company's target ending inventory is 62,000 wheels, and its beginning inventory is 55,000 wheels. The budgeted purchase price is16,000 yen (¥) per wheel. Required. 1.Compute the budgeted revenues in yen. 2.Compute the number of motorcycles that Yoshida should produce. 3.Compute the budgeted purchases of wheels in units and in yen.
1. Revenues, production, and purchase budgets. The Yoshida Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2021 is 915,000 units. Yoshida's target ending inventory is 90,000 units, and its beginning inventory is 95,000 units. The company's budgeted selling price to its distributors and dealers is 405,000 yen (¥) per motorcycle. Yoshida buys all its wheels from an outside supplier. No defective wheels are accepted. (Yoshida's needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company's target ending inventory is 62,000 wheels, and its beginning inventory is 55,000 wheels. The budgeted purchase price is16,000 yen (¥) per wheel. Required. 1.Compute the budgeted revenues in yen. 2.Compute the number of motorcycles that Yoshida should produce. 3.Compute the budgeted purchases of wheels in units and in yen.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:1. Revenues, production, and purchase budgets.
The Yoshida Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted
sales for Model G in 2021 is 915,000 units. Yoshida's target ending inventory is 90,000 units,
and its beginning inventory is 95,000 units. The company's budgeted selling price to its
distributors and dealers is 405,000 yen (¥) per motorcycle. Yoshida buys all its wheels from an
outside supplier. No defective wheels are accepted. (Yoshida's needs for extra wheels for
replacement parts are ordered by a separate division of the company.) The company's target
ending inventory is 62,000 wheels, and its beginning inventory is 55,000 wheels. The budgeted
purchase price is16,000 yen (¥) per
wheel.
Required.
1.Compute the budgeted revenues in yen.
2.Compute the number of motorcycles that Yoshida should produce.
3.Compute the budgeted purchases of wheels in units and in yen.
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