Dubai Technologies Company approached you as a Business Consultant to assist them in preparing their 2021 Master Budget. You have been provided with the following data:

PREPARE:Components (Direct Material Purchases) Budget

• The company is manufacturing and selling TWO models of a branded Smart Phone:

o XYZ Plus

o XYZs

• Expected number of units to be sold in 2021

o XYZ Plus: 150,000 units

o XYZs: 100,000 units

• Expected selling Price: o XYZ Plus: AED1500 per unit

o XYZs: AED 1000 per unit

• Each model requires 5 components (raw materials):

o Camera (XYZ Plus has 4 Cameras, while XYZs has only 2 Cameras).

o Keypad o Screen o Frame

o Motherboard.

• Purchasing prices for the five components are as follows:

o Camera: AED 90 o Keypads: AED 60 o Screen: AED 120 o Frame: AED 18 o Motherboard: AED 72

• The management policy is no ending inventory of any component item or finished goods is required.

PREPARE: Components (Direct Material Purchases) Budget