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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)- Topics: 0
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Its Means During Production There were 10% Normal Loss
Units Completed is 90% is 14400 units..So 10% is A Normal Loss
14400/90% its goes to 100%.. I hope you understand..U Have not enter what was the Question?
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