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Becker Bikes manufactures tricycles. The company expects to sell 540 units in May and 670 units in June. Beginning and ending finished goods for May
Becker Bikes manufactures tricycles. The company expects to sell 540 units in May and 670 units in June. Beginning and ending finished goods for May are expected to be 190 and 155 units, respectively. June's ending finished goods are expected to be 165 units. Each unit requires 3 wheels at a cost of $24 per wheel. Becker requires 20 percent of next month's material production needs on hand each month. July's production units are expected to be 640 units. Compute Becker's direct materials purchases budget with respect to wheels for May and June.
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