Solution-What is the budgeted amount of component A

What is the budgeted amount of component A

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Reference no: EM133033512

Question - 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?

Reference no: EM133033512

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What is the budgeted amount of component A

Reference no: EM133033512

Reference no: EM133033512

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