The Sonora Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2021 are 98 comma 000 units. Sonora's target ending inventory is 4 comma 500 units, and its beginning inventory is 7 comma 000 units. The company's budgeted selling price to its distributors and dealers is 3 comma 600 pesos per bicycle. Sonora buys all its wheels from an outside supplier. No defective wheels are accepted. A separate division of the company orders the extra wheels Sonora needs for replacement parts. The company's target ending inventory is 9 comma 000 wheels, and its beginning inventory is 17 comma 000 wheels. The budgeted purchase price is 100 pesos per wheel.

The Puebla Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2021 are 92,000 units. Puebla's target ending inventory is 8,500 units, and its beginning inventory is 16,000 units. The company's budgeted selling price to its distributors and dealers is 3,600 pesos per bicycle. Puebla buys all its wheels from an outside supplier. No defective wheels are accepted. A separate division of the company orders the extra wheels Puebla needs for replacement parts. The company's target ending inventory is 17,000 wheels, and its beginning inventory is 21,000 wheels. The budgeted purchase price is 100 pesos per wheel. Read the requirements. Add target ending finished goods inventory 8,500 100,500 16,000 84,500 Total required units Deduct beginning finished goods inventory Units of finished goods to be produced Requirement 3. Compute the budgeted purchases of wheels in units and in pesos. Direct materials to be used in production - number of wheels Add target…

The Yucatan Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2018 are 95,000 units. Yucatan’s target ending inventory is 7,000 units, and its beginning inventory is 11,000 units. The company’s budgeted selling price to its distributors and dealers is 3,500 pesos per bicycle. Yucatan buys all its wheels from an outside supplier. No defective wheels are accepted. Yucatan’s needs for extra wheels for replacement parts are ordered by a separate division of the company. The company’s target ending inventory is 14,000 wheels, and its beginning inventory is 16,000 wheels. The budgeted purchase price is 400 pesos per wheel. Q.Compute the number of bicycles that Yucatan should produce

The Yucatan Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2018 are 95,000 units. Yucatan’s target ending inventory is 7,000 units, and its beginning inventory is 11,000 units. The company’s budgeted selling price to its distributors and dealers is 3,500 pesos per bicycle. Yucatan buys all its wheels from an outside supplier. No defective wheels are accepted. Yucatan’s needs for extra wheels for replacement parts are ordered by a separate division of the company. The company’s target ending inventory is 14,000 wheels, and its beginning inventory is 16,000 wheels. The budgeted purchase price is 400 pesos per wheel. Q.Compute the budgeted purchases of wheels in units and in pesos.