=+10-22 K Revenues, production and purchases budgets OBJECTIVE 3 Suzuki Ltd has a division that manufactures two-wheel

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=+10-22 K Revenues, production and purchases budgets OBJECTIVE 3 Suzuki Ltd has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2015 is 450000 units. Suzuki’s target ending inventory is 40000 units and its beginning inventory is 50000 units. The company’s budgeted selling price to its distributors and dealers is $4000 per motorcycle.

Suzuki buys all its wheels from an outside supplier. No defective wheels are accepted. (Suzuki’s needs for extra wheels for replacement parts are ordered by a separate division of the company.) The company’s target ending inventory is 30000 wheels, and its beginning inventory is 25000 wheels. The budgeted purchase price is $160 per wheel.

Required 1 Calculate the budgeted revenues in dollars.

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Cost Accounting A Managerial Emphasis

ISBN: 9781442563377

2nd Edition

Authors: Monte Wynder, Madhav V. Rajan, Srikant M. Datar, Charles T. Horngren, William Maguire, Rebecca Tan

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