Becker Bikes manufactures tricycles. The company expects to sell 400 units in May and 530 units in June. Beginning and ending nished goods for May is expected to be 120 and 85 units, respectively. June's ending finished goods is expected to be 95 units. anit requires 3 wheels at a cost of $10 per wheel. Becker requires 20 percent of next month's material production needs on hand each month July's production units is expected to be 500 units. Each Compute Becker's direct materials purchases budget with respect to wheels for May and June. Budgeted cost of wheels purchased May June

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Chapter7: Budgeting
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Becker Bikes manufactures tricycles. The company expects to sell 400 units in May and 530 units in June. Beginning and ending
finished goods for May is expected to be 120 and 85 units, respectively. June's ending finished goods is expected to be 95 units. Each
unit requires 3 wheels at a cost of $10 per wheel Becker requires 20 percent of next month's material production needs on hand each
month July's production units is expected to be 500 units.
Compute Becker's direct materials purchases budget with respect to wheels for May and June.
Budgeted cost of wheels purchased
May
June
Transcribed Image Text:Becker Bikes manufactures tricycles. The company expects to sell 400 units in May and 530 units in June. Beginning and ending finished goods for May is expected to be 120 and 85 units, respectively. June's ending finished goods is expected to be 95 units. Each unit requires 3 wheels at a cost of $10 per wheel Becker requires 20 percent of next month's material production needs on hand each month July's production units is expected to be 500 units. Compute Becker's direct materials purchases budget with respect to wheels for May and June. Budgeted cost of wheels purchased May June
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