a.You are required to illustrate: (C6) 90 marks
i)Sales Budget
ii)Production Budget
iii)Direct Material Purchases Budget
iv)Direct Labour Budget
v)Factory Overhead Budget
vi)Closing Inventory Budget
vii) Cost of the Goods Sold Budget
viii)Selling and Administration Expenses Budget
ix)Cash Budget
x)Budgeted Statement of Comprehensive Income for the year ending 31st December 2019.
xi)Projected Financial Position as at 31st December 2019.
b. Present the output the above outputs (A3)10 marks
QUESTION : Problem based Group7 Prontor Limited is ready to prepare the master budget for the year of 2019. The company uses full absorption costing system. The Financial Position as at 31st December 2018 is as follows: Financial Position as at 31st December 2018 Fixed Assets RM Capital RM Land and building 100,000 100,000 ordinary shares At RM] each 100,000 Plant and machinery 20,000 General Reserve M Less: Accumulated depreciation 6 000 14 000 112,850 114,000 Current assets Current liabilities Debtors 10,000 Creditors for materials 20,000 Bank 10,000 Other creditors 13,000 Inventory : Materials 4,000 Finished goods 1% _ M 145,850 145,850 Sales and inventory data: East Malaysia : 2,000 units of Product Z and 2,000 units of Product Y. West Malaysia : 6,000 units of Product Z and 5,000 units of Product Y. Selling prices : Product Z at RM12 per unit Product Y at RM2O per unit Planned ending inventory : 400 units of Product Z and 700 units of Product Y Beginning inventory : 200 units of Product Z and 350 units of Product Y Additional information for Prontor Limited is as follows: . . M121 M 122 Dlrect Materlals Beginning inventory (units) 1,000 1,500 Flamed ending inventory (units) 2,000 3,000 Cost per unit RM1 RM2 Each unit of Product Z requires 2 units of M 121, 1 unit of M 122. Each unit of Product Y requires 2 units ofM 121, 2 units ofM 122. Data regarding the direct labour: Each unit of Product Z requires 1 hour to produce. Each unit of Product Y requires 2 hours to produce. The company pays all direct labour at an hourly rate of RM1.50. Factory overhead is expected to be as follows: RM Indirect materials 30,000 Indirect labour (xed) 20,000 Supplies 5,000 Power (50% variable) 2,000 Maintenance (40% variable) 2,000 Supervision 8,600 Rent 6,000 Depreciation m 75,600 Overhead is to be absorbed on a direct labour hour basis. Selling and Administration expenses are budgeted as below : RM Advertising 1,000 Salesmen's commission 3,000 Travelling expenses 2,000 Salesmen's salaries 4,000 Ofce salaries 2,000 Rent 3,000 Electricity 1,000 Stationery 500 Postage and telephone 500 General expenses m 18,000 The cash ows of the company are projected as below : Payments: (RM) Quarters Receipts from debtors (RM) 20,000 40,000 42 000 15 000 4th 68,000 5,000 Other costs Material purchase 20,000 20,000 Wages 7,000 7,000 7,000 7,350 loan. Compute interest to the nearest RM. a. You are required to illustrate: (C6) 90 marks i) Sales Budget 11) Production Budget iii) Direct Material Purchases Budget iv) Direct Labour Budget v) Factory Overhead Budget vi) Closing Inventory Budget vii) Cost of the Goods Sold Budget viii) Selling and Administration Expenses Budget ix) Cash Budget 25,000 15,000 20,000 25,000 Plant purchase - - - 5,000 Prontor Limited has an arrangement with its bankers that it can borrow money in multiples of RM 1,000, and pay interest at 12% per annum. Loans are borrowed on the rst day of the quarters and repayable on the last day of the quarters in question. Interest is to be paid on repayment of x) Budgeted Statement of Comprehensive Income for the year ending 31St December 2019. xi) Projected Financial Position as at 31St December 2019. b. Present the output the above outputs (A3)10 marks
