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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
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.
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