Answer the question below ..

CONFIDENTIAL MARCH 2021/SET B/MAC301/MAC2073 QUESTION 3 Wonder Sdn Bhd is in the process of preparing budgets for the third quarter of year 2021. The following information have been compiled by its Senior Accountant: May June July 18,000 September 20,000 20,000 August 19,000 280,000 17,000 150,000 230,000 200,000 140,000 210,000 150,000 160,000 150,000 Sales (units) Purchases (RM) Wages (RM) Production overhead (RM) Administration overhead (RM) Selling overhead (RM) 160,000 75,000 63,000 56,000 80,000 47,000 38,000 34,000 45,000 42,000 34,000 13,000 11,000 15,000 23,000 13,000 Additional information: i. Selling price is RM40 per unit. 10% of sales are cash sales. The remaining sales are credit sales. ii. 50% of the debtors will pay at the end of the month of sales and is entitled to a 5% cash discount, another 50% of the debtors will pay the next month following the sales. iii. All purchases are on credit and the payment to creditors will be as follows: 50% in the month following the purchases and the balance will be paid two months after purchases. iv. 75% of wages are paid in the month incurred while the balance will be paid on the first week of the following month. V. The production overhead costs are inclusive of depreciation on machinery amounting to RM11,000 per month and are settled in the month incurred. The other overhead costs will be paid one month after being incurred. vi. In September 2021, the company is expected to sell a motor van and the amount of cash received from sale of the motor van is RM31,000. vii. In June 2021, the company is expected to pay RM20,000 cash as deposit for buying a lorry which cost RM80,000. It is agreed that the remaining cost of the lorry will be settled by instalments for 60 months. First instalment payment will start in July 2021. viii. The balance at the bank as at 30 June 2021 is expected to be an overdraft of RM40,000. 5 CONFIDENTIAL CONFIDENTIAL MARCH 2021/SET B/MAC301/MAC 2073 Required: Prepare the Cash Budget for Wonder Sdn bhd for the months of July, August and September 2021. (Show clearly the working of cash receipts from sales and cash payments to supplier) (25 marks)