Question 4 1) Pensonic Company Malaysia manufactures the cyclonic vacuum cleaner which to be sold in Asia for RM2,000 per vacuum. The following information is in relation to the budgeted production and sales of cyclonic vacuum cleaners for the last quarter of 2019. Budgeted sales in units: July 13,000 August 15,000 September 16,000 October 17,700 November 18,800 December 20,500 60% of the sales will be collected on the month of sales. 30% of the sales will be collected two months after sales. 10% of the sales will be collected three months after sales. ii. Variable production cost per vacuum: Direct materials 250.00 Direct labour 60.00 Overhead 45.00 Budgeted production in units: August 12,000 September 14,000 October 14,500 November 15,800 December 19,000 It is the company policy to pay creditors for material one month after purchases are made. v. Wages and variable overhead are paid within the month they are incurred. vi. Sales commission are 8% on sales and are to be paid one month after sales are made.

vii. Fixed overhead is RM180,000 per month, which includes depreciation of RM35,000. viii. Fixed selling and administration is RM 120,000 per month which is payable in the month it is incurred. ix. One of the old machines will be sold for RM22,000 in the month of November and a new machine will be replace it in the same month at a cost of RM80,000. x. The company will pay dividends which was declared at RMIOO,OOO at the end of December. xi. It is expected that the cash balance on 30th September will be RM180,000. Required: a) Prepare a schedule of expected cash collections from customer for the last quarter of 2019. b) Prepare schedule for payment of materials for the last quarter of 2019. c) Prepare a cash budget for the last quarter of 2019. 2) The following information is given: Budgeted units to be sold for each quarter of the year 2020 are listed as per below: 2020 1 st quarter 2nd quarter 3rd quarter 4th quarter Units 1 ,500 1 ,600 1,800 1 ,600 Selling price is RM25 per t-shirt. Assume that company policy requires 20% of the next quarter's sales in ending inventory and that beginning inventory of t-shirts for the first quarter of the year was 320 units. Assume also that budgeted sales for the first quarter of 2021 are estimated at 2,000 units. Required: a) Prepare a sales budget for each quarter and for the year of 2020. b) Prepare a production budget for each quarter and for the year of 2020.