1 of 2 ACCT 202 Principles of Cost & Managerial Accounting Case study - Form Riyadh Furniture Lid. manufacture specialist wood fumiture and sell their products all over Saudi Arabia. The company was established three years ago in Jeddah and is performing well to date. The following financial information has been provided Financial Information Wardrobe Selling Price per unit SAR 1.000 Direct Materials (1 kg of wood timber) cost SAR 25 Kg of wood timber required per unit Variable manufacturing overhead per unit SAR 20 10 Additional Information: a) monthly Fixed cost SAR 2500 b) The company had & Wardrobes and 100 kg of wood timber in stock at the end of September c) Company policy is to maintain 20% of the following months sales level as closing inventory for finished goods, d) Company policy to maintain 25% of next months production needs as closing inventory for direct materials. e) Budgeted sales of TV tables for the next six months are as follows: October November December January February 40 35 20 20 20 1) Cash collections on sales are as follows: 30% in the month of sale 70% in the month following sale Receivables at the end of September were SAR 22,000 9) Cash payments on purchases are as follows: 60% in the month of purchase 40% in the following month 11 Page FORMS ACCT 202 Sarine 2021 Payables at the end of September were SAR 6,000 h) The closing cash balance in September 2020 was SAR 40,000 1) The company paid a dividend of SAR 40,000 in November j) Cash of SAR 50,000 was invested in the company by a private investor in October Requirement: Using the data given above, prepare the following detailed schedules along with other supportive schedules for the last quarter (October-November December) of the year 2020 1) Sales budget 2 points) 2) Production budget( 2 points) 3) Cash budget( 3 points) Supportive schedules a) Cash collection schedule 3 points) b) Direct material & payment schedule( 3 points) c) Variable manufacturing cost schedule.( 2 points) Part 2 Riyadh Furniture Ltd used the following data to evaluate their current operating system. The company sells items for SAR 1000 each and used a budgeted selling price of SAR 1000 per unit. Actual Budgeted Units sold 50 40 Variable costs 100 43 Fixed costs 4000 2500 Required: Prepare Static-Budget Variance Analysis (3 points) 21P FORMS ACCT 202 Spring 2021