Question
(a)CKC Sdn Bhd produces two products: SR200 and TX500. Budgeted sales in units for the following four months are given below: Months SR200 TX500 May
(a)CKC Sdn Bhd produces two products: SR200 and TX500. Budgeted sales in units for the following four months are given below:
Months SR200 TX500
May 8,000 20,000
June 13,000 32,000
July 11,000 39,000
August 18,000 46,000
CKC's ending inventory policy is that SR200 should have 15% of next month's sales in ending inventory and TX500 should have 40% of next month's sales in ending inventory. On May 1 2018, there were 1,200 units of SR200 and 9,000 units of TX500.
TX500 requires 6 units of component A. SR200 does not use component A. There were 30,000 units of component A in inventory on May 1. KC wants to have 20% of the following month's production needs in inventory for Component A
Required:
(i)How many units of TX500 are budgeted for production in June?
(ii)What is the budgeted production of SR200 for May in units?
(iii)What is the budgeted amount of component A to be purchased in May?
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