QUESTION : Problem based Group7 Prontor Limited is ready to prepare the master budget for the year of 2019. The company uses full absorption costing system. The Financial Position as al 31st December 2018 is as follows Financial Position as at 31st December 2018 RM Fixed Assels .and and building Plant and machinery Less: Accumulated depreciation RM Capital 100,00,0 ordinary shares At RM each 100,000 20,000 6000 General Reserve 12,850 14000 112,850 114.000 Currenl assels Deblons Bank Tnventory :Materials Current liabilities Creditors for materials Other credlitors 10,000 I 0,000 20.000 13.000 4,000 Finished goods 7.850 31 850 145,850 145.850 Sales and inventory data East Malaysia West Malaysia Seling prices 2.000 units of Product Z and 2.000 units of Product Y 6,000 units of lProduct Z and 5.000 units of Product Y Produet Z al RM12 per unit Product Y at RM20 per unit Planned ending inventory Beginning inventory 400 units 200 units of Product Z and 350 units of ProductY of Product Z and 700 unis oProduct Y Additional information for Prontor Limited is as follows: M121 M122 Direct Materials 1,500 3,000 RM2 Beginning inventory (units) 1,000 2,000 RM1 l'lanned ending inventory (units) Cost per unit Each unit of Product Z requires 2 units of M 121,1 unit of M 122 Each unit of Product Y requires 2 units of M 121, 2 units of M 122. Data regarding the direct labour Each unit of Product Z requires 1 hour to produce Lach unit of Product Y requires 2 hours to producc The company pays all direct labour at an hourly rate of RM1.50 Factory overhead is expected to be as follows RM 30.000 20,000 5,000 2,000 Indirect materials Indirect labour (fixed) Supplies Power ( 50% variable ) Maintenance (40% variable) 2,000 8,600 upervision Rent Depreciation 6,000 2.000 75.600 Overhead is to be absorbed on a direct labour hour basis Selling and Administration expenses are budgcted as below: RM Advertising Salesmen's commission Travelling cxpenses Salesmen's salaries Office salaries Rent Electricity Stationcry Postage and telcphone General cxpenses 1.000 3,000 2,000 4,000 2,000 3,000 1,000 500 500 1.000 18,000 The cash flows of the company are projected as below Quarters 2nd 40,000 3rd 42,000 4th 68,000 Reecipts from debtors (RM) Payments: (RM) 20,000 20,000 7,000 25.000 20,000 7,000 15,000 5,000 7,350 25,000 5,000 Material purchase Wages Other costs Plant purchase 15,000 7,000 20,000 Prontor Iimited has an arrangement with its bankers that it can borrow money in multiples of RM1,000. and pay interest at 12% per annum. Loans are borrowed on the first day of the quarters and repayable on the last day of the quarters in question Interest is to be paid on repayment of loan. Compute interest to the nearest RM a. You are required to illustrate: (C6) 90 marks i) Sales Budget ii) Production Budget iii) Direct Material Purchases Budget iv) Dircct Labour Budgct v Factory Ovcrhcad Budgct vi) Closing Inventory Hudget vii) Cost of the Goods Sold Budget viii) Selling and Administration Expenses Budget ix) Cash Budget x) Budgeted Statement of Comprehensive Income for the year ending 31 December 2019 xi) Projected Financial Position as at 31s December 2019 b.Present the output the above outputs (A3)10 marks