Sales price per unit is RM200 and the finished goods inventory level is 25% of the next month's unit sales. 5 kilograms of materials are required for each unit produced and the cost is RM50/kg. Inventory levels for materials equal 40% of the needs for the next month. Desired ending inventory for September is 157 kilograms of materials. Beginning inventory for July was 138 kilograms of materials. Each unit requires 0.8 hours of direct labor and the average wage rate is RM12 per hour.

i) Analyze a production budget for July, August, September and the quarter in total.

(ii) Analyze a direct materials purchases budget in kilograms and Ringgit Malaysia for July, August, September and in total for the quarter.

(iii) Construct a direct labor budget in hours and total cost for July, August and September and in total for the quarter.

(iv) Explain the difference between sales forecast and sales budget.

(a) The Dermaniaga Company has the following information available: (Syarikat Dermaniaga mempunyai maklumat berikut: Table 3: Total Monthly Sales (Jadual 3: Jumlah Jualan Bulanan/ Month Sales (RM) June 68,000 July 72,000 August 74,000 September 76,000 October 78,000