Becker Bikes manufactures tricycles. The company expects to sell 390 units in May and 520 units in June. Beginning and ending finished goods for May are expected to be 115 and 80 units, respectively. June's ending finished goods are expected to be 90 units. Each unit requires 3 wheels at a cost of $9 per wheel. Becker requires 20 percent of next month's material production needs on hand each month, July's production units are expected to be 490 units. Compute Becker's direct materials purchases budget with respect to wheels for May and June.
Becker Bikes manufactures tricycles. The company expects to sell 390 units in May and 520 units in June. Beginning and ending finished goods for May are expected to be 115 and 80 units, respectively. June's ending finished goods are expected to be 90 units. Each unit requires 3 wheels at a cost of $9 per wheel. Becker requires 20 percent of next month's material production needs on hand each month, July's production units are expected to be 490 units. Compute Becker's direct materials purchases budget with respect to wheels for May and June.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Becker Bikes manufactures tricycles. The company expects to sell 390 units in May and 520 units in June. Beginning and ending
finished goods for May are expected to be 115 and 80 units, respectively. June's ending finished goods are expected to be 90 units.
Each unit requires 3 wheels at a cost of $9 per wheel. Becker requires 20 percent of next month's material production needs on hand
each month, July's production units are expected to be 490 units.
Compute Becker's direct materials purchases budget with respect to wheels for May and June.
Budgeted cost of wheels purchased
May
June
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