Beckeers bikes manufactures tricycles. the company expects to sell 400 units in may and 530 in June. beginning and ending finished goods for may is expected to be 120 and 85 units, respectively. june's ending finished goods is expected to be 95 units. each unit requires 3 wheels at a cost of $10 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 500 units.

compute becker's direct materials purchases budget with respect to wheels for may and june.

Direct Material Purchases Budget  May        $ 14190            

Direct Material Purchases Budget     June      $19200

Explanation:

Beckeers Bikes Manufacturers

                                               May              June        July

Sales                                    400               530

+ Ending Inventory              85                  95

Less Beg. Inventory            120                 85                  

Production Budget            365               540             500 (given)      

Wheels per unit                  3                     3                    3

Total Wheels                   1095                1620           1500

Cost per wheel                $ 10                    $ 10            $ 10

Total Cost                       $ 10950            $ 16200       $ 15000

On hand(20% 0f

next month's production) $3240                $ 3000

Direct Material

Purchases Budget           $ 14190                 $19200

First we find the total production required each month . Then we find the costs. After that we find the Purchases including the on hand inventory.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

the third answer is correct.