Question

SELLING PRICE RM 29.99
COST PER UNIT RM 20.88

DIRECT MATERIAL per unit
- Stirrer RM 0.50
- Mug RM 2.00
- Battery RM 1.10
- Thermometer RM 3.50
= RM 7.10
MATERIALS PER UNIT
- Stirrer 1
- Battery 2
- Mug 1
- TOTAL MPU = 4
INDIRECT MATERIAL per unit
- Spring RM 1.00
- Skru RM 0.14
= RM 1.14

PRODUCT COSTS per QUARTER
FIXED MOH
- Research and Development RM 2500
- Indirect Labor RM 3600
- Rent Factory RM 9000
- Salary of workers RM 28800

VARIABLE MOH per unit
- Electricity RM2
- Indirect Material RM 1.14

PERIOD COSTS per QUARTER
FIXED S&A
- Advertising RM 3000
- Rental Office RM4500
- Salary of Office Workers RM 22500

VARIABLE S&A
- Transportation RM8

BUDGETED SALES UNIT per QUARTER
Q1- 18,000
Q2- 21,000
Q3- 24,000
Q4- 21,000

50% of sales are cash. And another 50% pay on the following month.

Ending Inventory for Production Budget is 10% of the following month's sales

Direct Labor Time per unit 0.33 hours
Hourly Wage Rate - RM8

Ending Inventory for Direct Material is 20% of the following month production needs.

80% will be paid to suppliers on the month of the purchase and another 20% on the next month.

Minimum Cash Balance RM 10,000
Borrowing - Interest 3%

Factory 50,000
Office 10,000
Machinery 15,000
Depreciation 3,000 (starts from Q2)

Make Sales Budget and Expected Cash Collection?

Answer 1

Sale Budget
	Q-1	Q-2	Q-3	Q-4	Total
Sales Quantity	$18,000.00	$21,000.00	$24,000.00	$21,000.00	$84,000.00
Selling Price per RM	$29.99	$29.99	$29.99	$29.99	$29.99
Estimated Sale	$539,820.00	$629,790.00	$719,760.00	$629,790.00	$2,519,160.00
Schedule of Expected Cash Collection
	Q-1	Q-2	Q-3	Q-4	Total
Cash Sales	$269,910.00	$314,895.00	$359,880.00	$314,895.00	$1,259,580.00
Collection from Credit sales
Q-1		$269,910.00			$269,910.00
Q-2			$314,895.00		$314,895.00
Q-3				$314,895.00	$314,895.00
Total cash collections	$269,910.00	$584,805.00	$674,775.00	$629,790.00	$2,159,280.00