Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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: (a) Prepare production budgets in units for July, August, and September.

(b) Prepare a purchases budget in kgs for July, August, and September, and give total purchases in both kgs and ringgits for each month.

Kindly answer both question with all necessary step of calculation step by step.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Essentials You Always Wanted To Know Self Learning Management Series

Authors: Vibrant Publishers , Kalpesh Ashar

5th Edition

1636510973, 978-1636510972

More Books

Students also viewed these Finance questions