Becker Bikes manufactures tricycles. The company expects to sell 360 units in May and 490...
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Becker Bikes manufactures tricycles. The company expects to sell 360 units in May and 490 units in June. Beginning and ending finished goods for May are expected to be 100 and 65 units, respectively. Junes ending finished goods are expected to be 75 units. Each unit requires 3 wheels at a cost of $6 per wheel. Becker requires 20 percent of next months material production needs on hand each month. Julys production units are expected to be 460 units.
Compute Beckers direct materials purchases budget with respect to wheels for May and June.
Becker Bikes manufactures tricycles. The company expects to sell 360 ulnits in May and 490 units in June. Beginning and ending finished goods for May are expected to be 100 and 65 units, respectively. June's ending finished goods are expected to be 75 units. Each unit requires 3 wheels at a cost of $6 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 460 units. Compute Becker's direct materials purchases budget with respect to wheels for May and June
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