Sutera Emas Sdn Bhd is producing and sells high quality silk. In year $2020,$ the company has introduced a new line product called $$Abstract Silk$$ to be sold to customer at RM$25$ per unit. Diana who is the management accountant of the company, has gathered the following data in preparing the upcoming $3$rd quarter budget for the year $2020.$ The sales forecast are as follows:

Month

Budgeted sales $($unit$)$

July $2020$

$4,000$

August $2020$

$5,000$

September $2020$

$6,000$

In order to cope with the demand, the company will maintain the monthly inventories of $$Abstract Silk$$ as follows:

July $2020$

August $2020$

September $2020$

Opening $($units$)$

$620$

$720$

$820$

Closing $($units$)$

$720$

$820$

$920$

The production of a unit of $$Abstract Silk$$ requires $5$ units Material ABC. The company will maintain the monthly inventories of $$Material ABC$$ as follows:

July $2020$

August $2020$

September $2020$

Opening $($units$)$

$190$

$180$

$170$

Closing $($units$)$

$180$

$170$

$160$

The purchase department has been acquiring the supplies of raw material from local supplier at lower than market price. Currently, the supplies of Material ABC was obtained from local suppliers at RM$4\mathrm{.}20$ per unit.

Every unit will need $9$ hours of direct labour and the rate for the direct labour is set to be at RM$11\mathrm{.}00$ per hour.

Required:

a$)$ Prepare the following monthly budgets for the $3$rd quarter of year $2020.$ i$.$ Sales budget $($RM value$)$

ii$.$ Production budget $($in units$)$

iii. Direct materials purchases budget $($in units and RM value$)$

iv$.$ Direct labour costs budget