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6. Syarikat Trini Power has the following budgeted sales for June to November 90,000 120,000 210,000 September150,000 180,000 120,000 June August October November There were

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6. Syarikat Trini Power has the following budgeted sales for June to November 90,000 120,000 210,000 September150,000 180,000 120,000 June August October November There were 30,000 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. Five kgs of materials are required for each unit produced. Each kg of material costs RM8. Inventory levels for materials are equal to 30% of the needs for the next month. Materials i nventory on June 1 was 15,000 kgs. Required: (a) Prepare production budgets in units for July, August, and September [9 marks] (b) Prepare a purchases budget in kgs for July, August, and September, and give total purchases in both kgs and ringgits for each month. 15 marks (c) Provide some of the drawbacks of using the operating budget as a control device. [6 marks]

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