Based on the following information given, prepare for the year ended 31 Dec. 2020 the followings: Sales budget ,Production units budget , Material usage budget , Material purchase budget , Direct labour cost budget , Identify SIX (6) different purposes of budgeting, State FOUR (4) of the criticisms of budgeting.

Fella Craft Sdn Bhd produces two home decoration products for domestic market namely NEAT and TIDY. The production of the products consumes two types of materials (Material X and Material Y) and worked by two types of labour (skilled labour and semi-skilled labour) The following information is the estimate productions and sales of the products for the month of December 2020 NEAT TIDY Sales in units 2,400 units 3,200 units RM 570 RM 480 RM 380 RM 320 400 800 Standard selling price per unit Production cost per unit Stock at production cost (1st December 2020) Stock at production cost (31st December 2020) Material X used for each unit Material Y used for each unit 500 1,100 2 meters 3 meters 1 meter 2 meters Skilled labour hours worked for each unit 10 hours 7 hours Semi-skilled labour hours worked for each unit 6 hours 5 hours Additional information: 1. Purchase cost of Material X and Material Y is RM 20 per meter and RM 30 per meter respectively. 2. Skilled labour will be paid at RM 5 per hour, while semi-skilled labour will be paid at RM 3 per hour. 3. Stocks of materials at purchase cost are as follows: Material X Material Y Stock at 1st December 2020 1,000 2,000 Stock at 31st December 2020 1,500 3,000