1. Revenues, production, and purchase budgets. The Yoshida Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2021 is 915,000 units. Yoshida's target ending inventory is 90,000 units, and its beginning inventory is 95,000 units. The company's budgeted selling price to its distributors and dealers is 405,000 yen (¥) per motorcycle. Yoshida buys all its wheels from an outside supplier. No defective wheels are accepted. (Yoshida's needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company's target ending inventory is 62,000 wheels, and its beginning inventory is 55,000 wheels. The budgeted purchase price is16,000 yen (¥) per wheel. Required. 1.Compute the budgeted revenues in yen. 2.Compute the number of motorcycles that Yoshida should produce. 3.Compute the budgeted purchases of wheels in units and in yen.

1. Revenues, production, and purchase budgets. The Yoshida Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2021 is 915,000 units. Yoshida's target ending inventory is 90,000 units, and its beginning inventory is 95,000 units. The company's budgeted selling price to its distributors and dealers is 405,000 yen (¥) per motorcycle. Yoshida buys all its wheels from an outside supplier. No defective wheels are accepted. (Yoshida's needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company's target ending inventory is 62,000 wheels, and its beginning inventory is 55,000 wheels. The budgeted purchase price is16,000 yen (¥) per wheel. Required. 1.Compute the budgeted revenues in yen. 2.Compute the number of motorcycles that Yoshida should produce. 3.Compute the budgeted purchases of wheels in units and in yen.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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