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: РOTS PANS 60,000 units @RM100 each 40,000 units @RM125 each Budgeted inventories: Beginning 20,000 Ending 25,000 Pots Pans Direct material (Granite) Direct material (Glass) Direct material (Handles) 8,000 32,000 kg 29,000 kg 10,000 36,000 kg 32,000 kg | 7,000 units 6,000 units Standard variable costs: POTS PANS Direct materials: 5kg @RM8.00 3kg@RM5.00 1 @RM3.00 RM40.00 4kg @RM8.00 15.00 3kg@RM5.00 Granite RM32.00 Glass 15.00 Handles 3.00 Total materials Direct labour Variable manufacturing 58.00 47.00 2hours@RM12.00 24.00 3hours@RM16.00 48.00 overhead 2hours@RM1.50 3.00 3hours@RM1.50 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.

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: РOTS PANS 60,000 units @RM100 each 40,000 units @RM125 each Budgeted inventories: Beginning 20,000 Ending 25,000 Pots Pans Direct material (Granite) Direct material (Glass) Direct material (Handles) 8,000 32,000 kg 29,000 kg 10,000 36,000 kg 32,000 kg | 7,000 units 6,000 units Standard variable costs: POTS PANS Direct materials: 5kg @RM8.00 3kg@RM5.00 1 @RM3.00 RM40.00 4kg @RM8.00 15.00 3kg@RM5.00 Granite RM32.00 Glass 15.00 Handles 3.00 Total materials Direct labour Variable manufacturing 58.00 47.00 2hours@RM12.00 24.00 3hours@RM16.00 48.00 overhead 2hours@RM1.50 3.00 3hours@RM1.50 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Analyse a production budget of the Bara Enterprise.
Show the solution in good accounting form
1. Calculate operating profit margin ratio and net profit margin ratio for the year 2015, 2016 and 2017.
Makers Ltd. manufactures and sells two products, Abba and Baba. In July 2018 Makers’Budget Department gathered the following data in order to prepare the individual budgets inthe master budget for 2019:2019 Projected Sales:Product Unit PriceAbba 80,000 $ 190Baba 60,000 $ 2702019 Inventories in Units:Expected Target:Product January 1, 2019 December 31, 2019Abba 22,000 26,000Baba 9,000 10,000To produce 1 unit of Abba and Baba, the following direct materials are used:Direct Material Unit Abba BabaA Pounds 5 6B Pounds 3 4C Each 0 1 Projected data for 2019 with respect to direct materials are as follows:Direct Material Purchase Price:Target Inventories January 1, 2019 December 31, 2019A $14 33,000 pounds 37,000 poundsB $ 6 28,000 pounds 30,000 poundsC $ 4 6,000 units 7,000…
National Quality Paint Inc. (NQPI) produces paints in Geelong, Victoria. The accountant has presented you the following budgeted data for the fourth quarter of 2021. Sales are forecasted to be 60,000 cans at a price of $40 per can. The budgeted beginning and ending finished goods inventories are 4,000 and 9,000 units respectively. It is estimated that each can of paint requires two kilograms of input at a budgeted price of $5 per kg. The beginning raw materials inventory is estimated as 3,000 kilograms. NQPI wants to keep ending raw materials inventory of 4,200 due to fluctuations in demand. Production of each can is estimated to take 2 hours of labour at a standard pay rate of $18 per hour. equired: (please show all steps of your computation in proper format) Prepare a direct material purchases budget for the fourth quarter of 2021. Prepare a direct labour budget for the fourth quarter of 2021.
Prepare schedules for cash receipts and cash payments, and determine the ending balances for the relevant balance sheet accounts. E10.30 (LO 4, 5) Service Environmental Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has been collected: 1. Clients usually pay 50% of their fee in the month when the service is provided, 40% the next month, and 10% in the second month after receiving the service. 2. Actual service revenues for 2021 and expected service revenues for 2022 are as follows: November 2021, $90,000; December 2021, $70,000; January 2022, $110,000; February 2022, $120,000; and March 2022, $130,000. 3. The company pays for purchases of landscaping supplies (direct materials) 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $14,000; January 2022, $13,000; February…
The SK Industries, Inc. manufactures and sells two products, Accel Active and Accel Regular. In September 2018, SK Industries Budget Department gathered the following data in order to prepare budgets for 2019: 2019 Projected Sales Product Accel Active 45,000|s225 |Units Price Accel Regular 75,000 S1s5 Expected Target Inventories Product January 1, 2019 December 31, 2019 Accel Active 9,000 12,000 Accel Regular 17,000 25,000 The following direct materials are expected to be used in the two products: Material Used per Unit Direct Material Unit Accel Active Accel Regular pound One 6. Two pound 4 2 Three pound Projected data for 2019 with respect to direct materials are as follows: Direct Material Expected Purchase PriceExpected Inventories Target Inventories (January 1, 2019) (December 31, 2019) One $15 27,000 lb 35,000 lb Two S7 30,000 lb 35,000 lb Three $4 4,000 lb 7,000 lb Projected direct labor requirements and rates for 2019 are as follows: Product Hours Per Unit Rate Per Hour Accel…
Makers Ltd. manufactures and sells two products, Abba and Baba. In July 2018 Makers’Budget Department gathered the following data in order to prepare the individual budgets inthe master budget for 2019:2019 Projected Sales:Product Unit PriceAbba 80,000 $ 190Baba 60,000 $ 2702019 Inventories in Units:Expected Target:Product January 1, 2019 December 31, 2019Abba 22,000 26,000Baba 9,000 10,000To produce 1 unit of Abba and Baba, the following direct materials are used:Direct Material Unit Abba BabaA Pounds 5 6B Pounds 3 4C Each 0 1 Projected data for 2019 with respect to direct materials are as follows:Direct Material Purchase Price:Target Inventories January 1, 2019 December 31, 2019A $14 33,000 pounds 37,000 poundsB $ 6 28,000 pounds 30,000 poundsC $ 4 6,000 units 7,000…
A company has the following budgeted sales in each quarter of the year 2024: Expected Sales Q1 Q2 Q3 Q4 Cash collection information is as follows: $240,000 $280,000 $300,000 $420,000 1. Of all sales, 70% are on credit REMBRA 2. 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter, and 10% are collected in the second quarter after the sale. 3. Accounts Receivable is estimated to be $63,000 on December 31,2023. The company expects to collect all outstanding receivabl in the first quarter of 2024. Q. What is the total cash collection for the second quarter of 2024? Answer. (Click to select) (Click to select) None of the answers are correct $231,000 $168,000 $252,000 $315,000
Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2019 111,000 Unit sales for December 2019 101,000 Expected unit sales for January 2020 113,000 Expected unit sales for February 2020 113,000 Expected unit sales for March 2020 118,000 Expected unit sales for April 2020 124,000 Expected unit sales for May 2020 137,000 Unit selling price $12 Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $181,800.Direct MaterialsDirect materials cost 80 cents per pound. Two pounds of direct materials…
KK ENTERPRISE was set up by a man and his with some few years ago. The trade in a lot of products. They don’t have enough knowledge in accounting for decision making. They need professional assistance to prepare budgets for the period October to December 2020. The following information has been provided to assist in the budgeting process: · Budgeted monthly sales revenue for 2020 is as follows: October GH¢ 40,000, November GH¢ 70,000, December GH¢ 50,000, January 2018 45,000. Sales are 20% cash and 80% credit. Credit sales are collected over a three- month period, 15% in the month of sale, 70% in the month following sale and 15% in the second month following sale. Total sales revenue in August amounts to GH¢30,000 and September’s total sales revenue amounts to GH¢36,000. Cost of sales is expected to amount to 60% of sales revenue each month. The business maintains its closing inventory levels at 75% of the following month’s cost of sales. Inventory at the beginning of October is…
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 60,000 units @RM100 each PANS 40,000 units @RM125 each Budgeted inventories: Beginning Ending Pots Pans Direct material (Granite) Direct material (Glass) Direct material (Handles) 20,000 8,000 32,000 kg 29,000 kg 6,000 units 25,000 10,000 36,000 kg 32,000 kg 7,000 units Standard variable costs: POTS PANS Direct materials: Granite Glass Handles Total materials 5kg @RM8.00 3kg@RM5.00 1 @RM3.00 RM40.00 15.00 3.00 58.00 4kg @RM8.00 3kg@RM5.00 RM32.00 15.00 47.00 Direct labour Variable manufacturing overhead Total 2hours@RM12.00…