Subject : Managerial and cost accounting

QUESTION 1 GAYA SAKAN Sdn Bhd has produced the following information from which functional budgets for the year 2021 are required. This company produces two types of product and the details are given below: Standard cost per unit: GLAMOUR RM FABULOUS RM 48 60 60 32 Direct material: XX at RM6 per kg YY at RM8 per kg Direct Labour: 10 hours at RM3 per hour 5 hours at RM3 per hour 30 15 42 25 Production overhead 152 160 25 30 185 Total production cost Gross profit Selling price 182 Budgeted data for the year: Sales value at standard selling price for product Glamour and Fabulous are RM436, 800 and RM592,000 respectively. Stocks are planned as follows: Finished goods GLAMOUR (RM) 60,800 FABULOUS (RM) 128.000 1 January (stock valued at production cost) 31 December Decreased 10% from the opening stock Stock of material: YY 1 January 31 December XX 9,000 kgs 7,600 kgs 8,000 kgs 6,000 kgs Required: a) From the data above, prepare for the year 2021: 0) Sales Budget Production Budget iii) Material Usage and Material Purchase Budget iv) Direct Labour Budget