The Puebla Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2021 are 92,000 units. Puebla's target ending inventory is 8,500 units, and its beginning inventory is 16,000 units. The company's budgeted selling price to its distributors and dealers is 3,600 pesos per bicycle. Puebla buys all its wheels from an outside supplier. No defective wheels are accepted. A separate division of the company orders the extra wheels Puebla needs for replacement parts. The company's target ending inventory is 17,000 wheels, and its beginning inventory is 21,000 wheels. The budgeted purchase price is 100 pesos per wheel. Read the requirements. Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory 8,500 Deduct beginning inventory -number of wheels Purchases to be made - number of wheels Cost per wheel in pesos Purchases cost in pesos 100,500 16,000 84,500 Units of finished goods to be produced Requirement 3. Compute the budgeted purchases of wheels in units and in pesos. Direct materials to be used in production - number of wheels Add target ending inventory - number of wheels Total requirement - number of wheels

The Puebla Co. in Mexico has a division that manufactures bicycles. Its budgeted sales for Model XG in 2021 are 92,000 units. Puebla's target ending inventory is 8,500 units, and its beginning inventory is 16,000 units. The company's budgeted selling price to its distributors and dealers is 3,600 pesos per bicycle. Puebla buys all its wheels from an outside supplier. No defective wheels are accepted. A separate division of the company orders the extra wheels Puebla needs for replacement parts. The company's target ending inventory is 17,000 wheels, and its beginning inventory is 21,000 wheels. The budgeted purchase price is 100 pesos per wheel. Read the requirements. Add target ending finished goods inventory Total required units Deduct beginning finished goods inventory 8,500 Deduct beginning inventory -number of wheels Purchases to be made - number of wheels Cost per wheel in pesos Purchases cost in pesos 100,500 16,000 84,500 Units of finished goods to be produced Requirement 3. Compute the budgeted purchases of wheels in units and in pesos. Direct materials to be used in production - number of wheels Add target ending inventory - number of wheels Total requirement - number of wheels

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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