Task 1: CLO3

Question

Neutron-X Sdn Bhd., manufactures keyboards for hand phones, namely, model TX7 and TX9. The new manager, Affan, wants to monitor the quarterly budgets for the quarter ending 31^stDecember 2021, to ensure the sales targeted can be executed as planned even with the current economic condition. The following information is available:

Budgeted sales:
TX7 6,000 units @RM100 each		TX9 4,000 units @RM125 each
Budgeted inventories:
	Beginning		Ending
TX7 TX9 Direct material (alpha) Direct material (beta) Direct material (gamma)	2,000 800 3,200 kg 2,900 kg 600 units		2,500 1,000 3,600 kg 3,200 kg 700 units

Standard variable costs:

	TX7		TX9
Direct materials: Alpha Beta Gamma Total materials	5kg @RM8.00 3kg@RM5.00 1 @RM3.00	RM40.00 15.00 3.00 58.00	4kg @RM8.00 3kg@RM5.00	RM32.00 15.00 47.00
Direct labour Variable manufacturing overhead Total	2hours@RM12.00 2hours@RM1.50	24.00 3.00 85.00	3hours@RM16.00 3hours@RM1.50	48.00 4.50 99.50

Variable manufacturing overhead cost is RM38,400 while fixed factory overhead is RM21,400 per quarter (including non-cash expenditure of RM15,600) and is allocated on total units produced.

Required:

For the quarter ending 31^st December 2021, prepare the following:

1. Sales budget.

(2 marks)

2. Production budget in units.

(5 marks)

3. Direct materials usage and purchase budget Alpha, Beta, Gama

(12 marks)

4. Direct labor budget.

(2 marks)

Task 2: CLO3

Financial information pertaining to Neutron-X Sdn Bhd above follows:

• Beginning cash balance is RM180,000
• Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarters sales were RM840,000. There are no bad debts.
• Purchases of direct materials and labor costs are paid for in the quarter acquired.
• Manufacturing overhead expenses are paid in the quarter incurred.
• Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are budgeted at RM34,000 per quarter, including RM9,000 of depreciation.

Required:

Refer to the sales budget prepared in Task 1. Construct a cash budget for Neutron-X Sdn Bhd for the quarter ending 31^st December 2021.

(7 marks)