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Budget East Mountain Bike expects to sell 25,000 electronic bicycles next year. The management estimates...

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Accounting

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Budget East Mountain Bike expects to sell 25,000 electronic bicycles next year. The management estimates that the beginning and ending inventory will be 2,000 units and 3.500 units, respectively. Required: Prepare a production budget for next year. B 2ooo + A 2 6 500 =5 28 5 oo -s 25 ooo = E 3500 Part 2 Each electronic bicycle produced at East Mountain Bike requires two major parts (frame and tires) and an electronic subassembly from its suppliers as inputs. The following information is available: Frame Electronic subassembly Material per bike Unit cost Beginning inventory Ending inventory $900 1.100 2,500 Tires 2 $30 2.000 3,200 $420 950 1,800 Required: Prepare the direct material budget for next year. FRAME TIRES 2ooo TOO 3 Zoo = E 2500

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