Beats Hawk Co. manufactures and sells skateboards. The company manufactures a

single model - PrimeX, which sells at RM185 per unit. The management accountant

gathered the following information to prepare budgets for the fourth quarter of 2019:

Sales projections of the upcoming months show the estimated units sales of PrimeX

to be as follows:

2019 2020

October November December January February

Budgeted Sales (units) 1,100 1,250 1,400 1,400 1,350

It is the policy of the company to end each month with enough finished-goods

inventories to cover 20% of the following month's sales. There were 220 units of

PrimeX on hand at the end of September, 2019.

PrimeX is made of hard maple wood from North American forests. Eight board feet

of hard maple wood are used to produce a unit of PrimeX. The company keeps 10%

of the hard maple wood required for next month's production on hand at the end of

each month. The hard maple wood costs RM5 per board feet. The inventory report

was misplaced and the management accountant had to calculate the opening

balance of hard maple wood for October.

All sales are on account. The company's collection pattern is: 30% collected in the

month of sale, 50% collected in the month following sale and 20% in the second

month following sale. The opening balance of account receivables is RM20,000 will

be collected in full in October 2019.

Prepare the following budgets for the months of October, November and December

2019, and for the quarter:

a. Sales budget

b. Expected cash collection budget (in RM)

c. Production budget

d. Direct material purchases budget (in RM)