In: Accounting
1. 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 is expected to be 190 and 155 units, respectively. June's ending finished goods is 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 is expected to be 640 units. Compute Becker's direct materials purchases budget with respect to wheels for May and June.
2. Becker Bikes manufactures tricycles. The company expects to sell 420 units May and 550 units in June. Beginning and ending finished goods for May is expected to be 130 and 95 units, respectivelyJune's ending finished goods is expected to be 105 units Each unit requires 1.5 direct labor hours and Becker's hourly labor rate is $54 per hour. Compute Becker's direct labor budget for May and June(Do not round intermediate calculations.)