Company Information

Wood Work Ltd manufacture specialist wood furniture and sell their products all over Saudi Arabia. The company was established three years ago in Jeddah and is performing well to date. The following financial information has been provided.

Financial Information

	TV tables
Selling Price per unit	SAR 1,000
Direct Materials (1 Kg of wood timber) cost	SAR 25
Kg of wood timber required per unit	10
Direct Labour hour cost	SAR 30
Number of labour hours per unit	3
Variable manufacturing overhead per unit	SAR 20

Additional Information:

1. monthly Fixed cost SAR 2500

2. The company had 8 TV tables and 100 kg of wood timber in stock at the end of September.

3. Company policy is to maintain 20% of the following months sales level as closing inventory for finished goods.

4. Company policy to maintain 25% of next months production needs as closing inventory for direct materials.

5. Budgeted sales of TV tables for the next six months are as follows:

October	November	December	January	February
40	35	20	20	20

6. Cash collections on sales are as follows:

30% in the month of sale

70% in the month following sale

Receivables at the end of September were SAR 22,000

7. Cash payments on purchases are as follows:

60% in the month of purchase

40% in the following month

Payables at the end of September were SAR 6,000

8. The closing cash balance in September 2020 was SAR 40,000

1. The company paid a dividend of SAR 40,000 in November

10. Cash of SAR 50,000 was invested in the company by a private investor in October.

Requirement:

Using the data given above, prepare the following detailed schedules along with other supportive schedules for the last quarter (October- November December) of the year 2020.

1. Sales budget
2. Production budget
3. Production cost budget
4. Cash budget

Supportive schedules

1. Cash collection schedule
2. Direct material schedule
3. Direct labor schedule
4. Variable manufacturing cost schedule.