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Milli' s Tea Company has budgeted sales of 300,000 cans of ice tea mix during June 2021 and 375,000 can during July. Production of the
Milli' s Tea Company has budgeted sales of 300,000 cans of ice tea mix during June 2021 and 375,000 can during July. Production of the mix tea requires 14 grams of tea and 2 grams of sugar. The tea and sugar cost RM3.50 and RM1.80 per kilogram respectively. June 1 inventories of tea are as per Table Q1(a): Table Q1(a) : Cost Information The company generally carries an inventory of 5 percent of the following months needs for finished goods. Ending raw material are stocked in relation to finished goods ending inventory. Prepare : (i) A production budget for June 2021 (5 marks) (ii) A purchase budget for June 2021 (16 marks)
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