Q1 : DO Variable Over Head Manufacturing Cost Budget for February March and April (using information on "b" )

Q2 : Prepare cash budget for the months of February March and April

Jan Saudi Plastic Products Company Ltd (SAPPCO), a Pipes manufacturer has the following budgeted unit sales for the next six-month period: Month Unit Sales 90,000 Feb 120,000 March 210,000 April 150,000 May 180,000 June 120,000 a. The selling price of each pipe is SAR 20. b. Variable cost per unit is SAR 2 and monthly fixed cost is SAR 100,000. c. The cash collected 60% in cash and remaining 40%in the next month. Bad debts are negligible and can be ignored. d. There were 30,000 units of finished goods in inventory at the beginning of Jan. SAPPCO Plans are to have an inventory of finished products that equal 20% of the unit sales for the next month. e. Five lbs. of materials are required for each unit produced. Each lbs. of material costs SAR 5. Inventory levels for materials are equal to 30% of the needs for the next month. Materials inventory on Jan I was 15,000 lbs. f. Purchases are paid for 50% in the month of purchase and 50% in the following month. g. The companies beginning cash balance of Feb was SAR 2,000,000. Dividends paid during the month March is SAR 10,000 h. Commission received in month of Feb SAR 4.000 i. Lease Rent paid on machineries in month of April SAR 10,000