Caron Sdn Bhd has undertaken its budget planning for the coming accounting period ending 30 September 2020.

Budget item Budget data Sales 40,000 units; selling price RM80 Cost of inventory Direct materials: 2 kilograms @ RM5 per kilogram Direct labour: 3 hours @ RM12 per hour Indirect manufacturing costs: RM6 per direct labour hour Raw materials inventory Beginning balance: 10,000 kilograms Ending balance: 15,000 kilograms Raw material cost RM5 per kilogram Selling and administration costs RM200,000