QUESTION 4 A manufacturing company, Thorny Bhd, produces and sells mountaineering equipment under the brand Climber. The management wants to prepare a comprehensive budget for the fourth quarter of 2017 (September to December) and has collected the following information: a) The marketing department has estimated the sales units as follows: September 2,500 October.... 2,000 November 1,500 December 1,500 3 COURSE CODE/COURSE NAME EXAM DIET (MONTH YEAR The price per unit of a Climber is RM100. b) The opening finished goods inventory on September is 300 units. The company maintains a finished goods inventory at a rate of 10% of the following month's sales. It is assume that sales on January 2018 will be 3000 units. c) Each unit of Climber requires 1kg mixture of raw materials B, which cost RM5 per kg. The beginning inventory of raw material is 420kg. The company wishes to maintain the inventory of raw material B at the end of the month to be 20% of the production for the following months. It is assuming that production for January 2018 is 2,400. d) The company direct labour hours that required for production per unit are 0.50 hours and direct labour cost is RM15 per hour. Prepare a sales budget for the fourth quarter of the year 2017. (2 marks) b. Prepare a production budget for the fourth quarter of the year 2017. Assumes a budgeted sale in January 2018 is 3,000 units. (4marks) C. Prepare a direct materials purchased budget for the fourth quarter of the year 2017. (8 marks) d Prepare direct labour budget for the fourth quarter of the year 2017. (4 marks)