Cost Accounting (15th Edition)
Cost Accounting (15th Edition)
15th Edition
ISBN: 9780133428704
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 6, Problem 6.20E

1.

To determine

Sales Budget:

The sales budget is the budget prepared to estimate the revenue, the expected number of units to be sold and the expected selling price for each product. The sales budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

Budgeted Production:

The units which are expected to be produced are called as the budgeted production. The budgeted production is determined by adding the ending goods inventory to the budgeted sales and deducting the beginning inventory from it.

The budgeted revenues in yen.

2.

To determine

The number of bicycles to be produced by Y Company.

3.

To determine

The budgeted purchase of wheels in units and in yen.

4.

To determine

To explain: The action taken by the managers to reduce the budgeted purchasing costs of wheels assuming the same budgeted sales.

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