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Syarikat Trini Power has the following budgeted sales for June to November. Month June Jul August Septembe October November Unit Sales 90,000 120,000 210,000 180,000
Syarikat Trini Power has the following budgeted sales for June to November. Month June Jul August Septembe October November Unit Sales 90,000 120,000 210,000 180,000 120,000 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 inventory on June 1 was 15,000 kgs. Required (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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