ecker Bikes manufactures tricycles. The company expects to sell 480 units in May and 610 units in June. Beginning and ending mished goods for May are expected to be 160 and 125 units, respectively. June's ending finished goods are expected to be 135 units. ach unit requires 3 wheels at a cost of $18 per wheel. Becker requires 20 percent of next month's material production needs on hand sach month. July's production units are expected to be 580 units. ompute Becker's direct materials purchases budget with respect to wheels for May and June. Budgeted cost of wheels purchased May June
ecker Bikes manufactures tricycles. The company expects to sell 480 units in May and 610 units in June. Beginning and ending mished goods for May are expected to be 160 and 125 units, respectively. June's ending finished goods are expected to be 135 units. ach unit requires 3 wheels at a cost of $18 per wheel. Becker requires 20 percent of next month's material production needs on hand sach month. July's production units are expected to be 580 units. ompute Becker's direct materials purchases budget with respect to wheels for May and June. Budgeted cost of wheels purchased May June
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Becker Bikes manufactures tricycles. The company expects to sell 480 units in May and 610 units in June. Beginning and ending
finished goods for May are expected to be 160 and 125 units, respectively. June's ending finished goods are expected to be 135 units.
Each unit requires 3 wheels at a cost of $18 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 580 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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