Extracted text: Alya Sdn Bhd. manufactures and supplies granite pots and pans with glass lids to a company in Japan. The
new manager, Rushdi, wants to monitor the quarterly budgets for the quarter ending 30th September 2021
to ensure the sales targeted can be executed as planned even with the current economic condition. The
following information is available:
Budgeted sales:
POTS
PANS
60,000 units @RM100 each
40,000 units @RM125 each
Budgeted inventories:
Ending
Beginning
20,000
Pots
25,000
10,000
36,000 kg
32,000 kg
Pans
Direct material (Granite)
Direct material (Glass)
Direct material (Handles)
8,000
32,000 kg
29,000 kg
6,000 units
7,000 units
Standard variable costs:
POTS
PANS
Direct materials:
5kg @RM8.00
XXXXXXXXXX
RM40.00 4kg @RM8.00
15.00 XXXXXXXXXX
Granite
RM32.00
Glass
15.00
Handles
1 @RM3.00
3.00
Total materials
58.00
47.00
Direct labour
XXXXXXXXXX
24.00 XXXXXXXXXX
48.00
Variable manufacturing
overhead
XXXXXXXXXX
3.00 XXXXXXXXXX
4.50
Total
85.00
99.50
Variable manufacturing overhead cost is RM384,000, while fixed factory overhead is RM214,000 per quarter
(including the non-cash expenditure of RM156,000) and is allocated on total units produced.
Extracted text: Financial information follows:
Beginning cash balance is RM1,800,000
• Sales are on credit and are collected 50 percent in the current period and the remainder in the next
period. Last quarter's sales were RM8,400,000. There are no bad debts.
• Purchases of direct materials and labor costs are paid for in the quarter acquired.
• Manufacturing overhead expenses are paid in the quarter incurred.
Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are
budgeted at RM340,000 per quarter, including RM90,000 of depreciation.
Required:
1. For the quarter ending 30th September 2021, prepare the following:
a) Sales budget.
b) Production budget in units.
c) Direct materials usage and purchase budget (Granite, Glass & Handles).
d) Direct labor budget.
2. Construct a cash budget for Alya Sdn Bhd for the quarter ending 30th September 2021.