Next month's budgeted sales for TMP is 18,000 units. Each unit of product TMP uses 6 kilograms of raw materials. The production and inventory budgets for June 2021 are as follows: Raw materials Finished goods Opening Inventory 21,000 kgs. 15,000 units Planned Ending Inventory 24,400 kgs. 11,400 units During the production process, it is usually found that 10% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process.

Next month's budgeted sales for TMP is 18,000 units. Each unit of product TMP uses 6 kilograms of raw materials. The production and inventory budgets for June 2021 are as follows: Raw materials Finished goods Opening Inventory 21,000 kgs. 15,000 units Planned Ending Inventory 24,400 kgs. 11,400 units During the production process, it is usually found that 10% of production units are scrapped as defective and this loss occurs after the raw materials have been placed in process.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3CMA: Ming Company has budgeted sales at 6,300 units for July, and desires to have 590 good units on hand...

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