1.

Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 290 units in July and 430 units in August. Each unit requires 8 feet of wood at a cost of $1.30 per foot. Preston wants to always have 250 feet of wood on hand in materials inventory.

Compute Preston's direct materials purchases budget for July and August.

	July	August
Budgeted direct materials purchases

2. Preston, Inc., manufactures wooden shelving units for collecting and sorting mail. The company expects to produce 290 units in July and 370 units in August. Each unit requires 3.00 hours of direct labor, and labor wages average $11 per hour. Compute Prestons direct labor budget for July and August.

	July	August
Budgeted direct labor cost

3.

Becker Bikes manufactures tricycles. The company expects to sell 390 units in May and 520 units in June. Beginning and ending finished goods for May is expected to be 115 and 80 units, respectively. Junes ending finished goods is expected to be 90 units.

Compute Beckers production budget for May and June.

	May	June
Budgeted production (units)

4. Becker Bikes manufactures tricycles. The company expects to sell 410 units in May and 540 units in June. Beginning and ending finished goods for May is expected to be 125 and 90 units, respectively. Junes ending finished goods is expected to be 100 units. Each unit requires 3 wheels at a cost of $11 per wheel. Becker requires 20 percent of next months material production needs on hand each month. Julys production units is expected to be 510 units. Compute Beckers direct materials purchases budget with respect to wheels for May and June.

	May	June
Budgeted cost of wheels purchased