Reference no: EM132405299

Question

REQUIREMENT: Budgets and Budgetory Controls

Part 1: CLO4

Good Produce Sdn. Bhd. is a manufacturing company. It manufactures 2 products, known as 'A' and 'Z'. The following information is given for the year 2019: -

The standard direct materials and direct labour used for each product is as follows:

'A' 'Z'

Material 1 10 units 8 units

Material 2 5 units 9 units

Direct Labour 10 hours 15 hours

Standard direct materials and direct labour costs:

(RM)

Material 1 8.20 per unit

Material 2 17.00 per unit

Direct Labour 14.00 per hour

Other important data is as follows for the year 2019:

Direct materials

Material 1 Material 2

Opening inventory (units) 9,000 8,500

Closing inventory required (units) 10,000 2,000

Finished products

'A' 'Z'

Forecast sales (units) 8,500 1,600

Selling price per unit RM500 RM660

Ending inventory required (units) 2,000 100

Beginning inventory (units) 200 90

Required:

Prepare the following budgets for the year 2019: -

(a) Sales budget

(b) Production budget

(c) Direct material usage budget

(d) Direct material (purchase budget)

(e) Direct labour budget