SELLING PRICE RM 29.99 COST PER UNIT RM 20.88

DIRECT MATERIAL per unit - Stirrer RM 0.50 - Mug RM 2.00 - Battery RM 1.10 - Thermometer RM 3.50 = RM 7.10 MATERIALS PER UNIT - Stirrer 1 - Battery 2 - Mug 1 - TOTAL MPU = 4 INDIRECT MATERIAL per unit - Spring RM 1.00 - Skru RM 0.14 = RM 1.14

PRODUCT COSTS per QUARTER FIXED MOH - Research and Development RM 2500 - Indirect Labor RM 3600 - Rent Factory RM 9000 - Salary of workers RM 28800

VARIABLE MOH per unit - Electricity RM2 - Indirect Material RM 1.14

PERIOD COSTS per QUARTER FIXED S&A - Advertising RM 3000 - Rental Office RM4500 - Salary of Office Workers RM 22500

VARIABLE S&A - Transportation RM8

BUDGETED SALES UNIT per QUARTER Q1- 18,000 Q2- 21,000 Q3- 24,000 Q4- 21,000

50% of sales are cash. And another 50% pay on the following month.

Ending Inventory for Production Budget is 10% of the following month's sales

Direct Labor Time per unit 0.33 hours Hourly Wage Rate - RM8

Ending Inventory for Direct Material is 20% of the following month production needs.

80% will be paid to suppliers on the month of the purchase and another 20% on the next month.

Minimum Cash Balance RM 10,000 Borrowing - Interest 3%

Factory 50,000 Office 10,000 Machinery 15,000 Depreciation 3,000 (starts from Q2)

Make Sales Budget and Expected Cash Collection?