Question

ACC 102 Problem 3-25 points Bicycle Manufacturers, Inc. projected sales of 55,000 bicycles for 2008. The estimated January 1, 200 inventory is 4,000 units, and the desired December 31, 2008, inventory is 6,000 units. What is the budgeted production (in units) for 2008?

Answer 1

Answer 1. Production Budget Budgeted sales Add: Desired ending inventory Total needs Less: Beginning inventory Required production 55000 6000 61000 4000 57000 52000 Answer 2. Direct Materials Budget Required production in units Units of raw materials needed per unit Units of raw materials needed to meet production Add: Desired ending materials inventory Total units of materials needed Less: Beginning materials inventory Units of materials to be purchased Cost of materials per yard Cost of materials purchased 312000 30000 342000 31000 311000 3.50 1088500