Budgeted Sales 18,000 units
Open Inventories 15,000 Units
Closing Inventories 11,400 Units
10% of inventories are scrapped as defective, what is Budgeted Production.
i am OK with the question till i get to the 10% defective inventories, the answer to this question shows (10% of Output = 1/9 of Input). Don't understand could someone explain
Units completed= 18,000-15,000+11,400 = 14,400 units
but how did they get (10% of Output = 1/9 of Input)
Open Inventories 15,000 Units
Closing Inventories 11,400 Units
10% of inventories are scrapped as defective, what is Budgeted Production.
i am OK with the question till i get to the 10% defective inventories, the answer to this question shows (10% of Output = 1/9 of Input). Don't understand could someone explain
Units completed= 18,000-15,000+11,400 = 14,400 units
but how did they get (10% of Output = 1/9 of Input)
