Each electronic bicycle produced at East Mountain Bike requires two major parts (frame and tires) and an electronic subassembly from its suppliers as inputs. The following information is available:
|
Frame
|
Tires
|
Electronic subassembly
|
|
Material per
|
1
|
2
|
1
|
|
Unit cost
|
$900
|
$30
|
$420
|
|
Beginning inventory
|
1,100
|
2,000
|
950
|
|
Ending inventory
|
2,500
|
3,200
|
1,800
|
Required:
Prepare the direct material budget for next year.