BUDGET FORECASTING - SEASONAL VARIATIONS Exercise: Angsa Bhd uses a budgeting system to control the costs and revenues of its only product ALPHA. The management accountant of Angsa Bhd has asked for your assistance in preparing the budget for the year ended 2022 1. The standard cost and its selling price for ALPHA is as follows RM Selling price 250 Direct material (4kgs @ RM/KG) (32) Direct labour (6 hours @ RM15/hr) 180 Contribution margin 128 2 Angsa Bhd uses time series analysis to forecast sales volume. The trend in sales and forecasted seasonal variations for year 2022 is given below Quarter 2 3 Trend (sales units) 1,200 1.300 1,400 1,500 Seasonal variation (sales - 150 +200 300 -350 units) The sales trend figures for the first two quarters of year 2023 are estimated to be 1,600 and 1,700 units respectively Quarterly seasonal variations are expected to be as for year 2022 It is the policy of the company to always carry sufficient inventory of finished goods to meet 50% of the next quarter's forecasted sales, and sufficient raw materials to meet 80% of the next quarter's forecasted production Required: Prepare the following budgets for each quarter of 2022 Sales budget ii. Production budget Material purchase budget BUDGET FORECASTING - SEASONAL VARIATIONS Exercise: Angsa Bhd uses a budgeting system to control the costs and revenues of its only product ALPHA. The management accountant of Angsa Bhd has asked for your assistance in preparing the budget for the year ended 2022 1. The standard cost and its selling price for ALPHA is as follows RM Selling price 250 Direct material (4kgs @ RM/KG) (32) Direct labour (6 hours @ RM15/hr) 180 Contribution margin 128 2 Angsa Bhd uses time series analysis to forecast sales volume. The trend in sales and forecasted seasonal variations for year 2022 is given below Quarter 2 3 Trend (sales units) 1,200 1.300 1,400 1,500 Seasonal variation (sales - 150 +200 300 -350 units) The sales trend figures for the first two quarters of year 2023 are estimated to be 1,600 and 1,700 units respectively Quarterly seasonal variations are expected to be as for year 2022 It is the policy of the company to always carry sufficient inventory of finished goods to meet 50% of the next quarter's forecasted sales, and sufficient raw materials to meet 80% of the next quarter's forecasted production Required: Prepare the following budgets for each quarter of 2022 Sales budget ii. Production budget Material purchase budget