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:(see the photo)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 information follows:Beginning cash balance is RM1,800,000Sales 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.For the quarter ending 30th September 2021, prepare the following: Sales budget.Direct labor budget. Budgeted sales:POTSPANS60,000 units @RM100 each40,000 units @RM125 eachBudgeted inventories:BeginningEndingPots20,00025,000Pans8,00010,000Direct material (Granite)Direct material (Glass)Direct material (Handles)32,000 kg29,000 kg36,000 kg32,000 kg6,000 units7,000 unitsStandard variable costs:POTSPANSDirect materials:Skg @RM8.003kg@RM5.00RM40.00 4kg @RM8.0015.00 3kg@RM5.00GraniteRM32.00Glass15.00Handles1 @RM3.003.00Total materials58.0047.00Direct labour2hours@RM12.0024.00 3hours@RM16.0048.00Variable manufacturingoverhead2hours@RM1.503.00 3hours@RM1.504.50Total85.0099.50

A budget is a forecast of revenue and expenses for a certain future period of time that is generally…

Answered: Alya Sdn Bhd. manufactures and supplies…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 30^th September 2021 to ensure the sales targeted can be executed as planned even with the current economic condition. The following information is available:

(see the photo)

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 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.

For the quarter ending 30^th September 2021, prepare the following:

Sales budget.

Direct labor budget.

Budgeted sales:
POTS
PANS
60,000 units @RM100 each
40,000 units @RM125 each
Budgeted inventories:
Beginning
Ending
Pots
20,000
25,000
Pans
8,000
10,000
Direct material (Granite)
Direct material (Glass)
Direct material (Handles)
32,000 kg
29,000 kg
36,000 kg
32,000 kg
6,000 units
7,000 units
Standard variable costs:
POTS
PANS
Direct materials:
Skg @RM8.00
3kg@RM5.00
RM40.00 4kg @RM8.00
15.00 3kg@RM5.00
Granite
RM32.00
Glass
15.00
Handles
1 @RM3.00
3.00
Total materials
58.00
47.00
Direct labour
2hours@RM12.00
24.00 3hours@RM16.00
48.00
Variable manufacturing
overhead
2hours@RM1.50
3.00 3hours@RM1.50
4.50
Total
85.00
99.50

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