User Account

All Pages

Prepare the raw material usage and purchase budget

Assignment Help Managerial Accounting
Reference no: EM132850975

Question - Raising Star Berhad manufactures a single product called Mac and it was sold in the market at the price of RM18 per unit. The marketing department of Raising Star Berhad has submitted the following sales forecast for the upcoming year 2021: Month Sales Demand Quarter 1 11,000 units Quarter 2 12,000 units Quarter 3 14,000 units Quarter 4 13,000 units.

The company expects to start the first quarter with 1,650 units in finished goods inventory. It is the company's policy to hold stocks of finished goods at the end of each quarter equals to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. The beginning raw materials inventory for the first quarter is budgeted to be 1,400 kg. Each unit of Mac requires 2 kg of raw material that costs RM1.50 per kg. The management's policy is to hold ending inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending raw material inventory for the fourth quarter is 1,500 units. In addition, the labour is paid at RM12.00 per hour and each unit of Mac requires production time of 30 minutes.

Required -

a. Prepare the sales budget of Raising Star Berhad for each quarter of the upcoming year 2021.

b. Prepare the production budget of Raising Star Berhad for each quarter of the year 2021.

c. Prepare the raw material usage and purchase budget of Raising Star Berhad for each quarter of the year 2021.

d. Prepare the direct labour budget of Raising Star Berhad for each quarter of the year 2021?

Reference no: EM132850975

Questions Cloud

Find the depreciation expense on the SYD basis : The machine has a 6-year life and no residual value. Find the depreciation expense on the SYD basis at the end of 2005
Assess patient factors and history to develop personalized : Assess patient factors and history to develop personalized plans of anxiolytic therapy for patients. Analyze factors that influence pharmacokinetic.
Description of personal and professional goals : Description of Personal and Professional Goals My personal goal within the health care field is to become a successful and exceptional nurse.
Suggest a difference in the amount of time : Does the evidence suggest a difference in the amount of time required to obtain relief? Use the 0.05 significance level. Interpret it.
Prepare the raw material usage and purchase budget : Prepare the raw material usage and purchase budget of Raising Star Berhad for each quarter of the year 2021
What is the level of significance : The types of raw materials used to construct stone tools found at an archaeological site are shown below. A random sample of 1486 stone tools
What is endurance hunting : What is endurance hunting? How does it work? What are its virtues? Considering HIV and Ebola, why has one resulted in an epidemic and one in a pandemic?
How much should be recorded as the total cost : If all the rights are exercised. How much should be recorded as the total cost of the new investment through the exercise of share rights
Describe the effect of health care reform on the us health : Describe the effect of health care reform on the U.S. health care system and its respective stakeholders. Support your post with a peer-reviewed journal article

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd