Revenues, production, and purchases budgets. The Suzuki Co. in Japan has a division that manufactures two-wheel motorcycles.
Question:
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 60,000 wheels, and its beginning inventory is 50,000 wheels. The budgeted purchase price is 16,000 yen (¥) per wheel.
1. Compute the budgeted revenues in yen.
2. Compute the number of motorcycles to be produced.
3. Compute the budgeted purchases of wheels in units and in yen.
Ending InventoryThe ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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