TUTORIAL: BUDGETS QUESTION 1 Bintang Berhad manufactures product BFF and it is currently being sold in the market at the price of RM18 per unit. The company plans to increase the selling price of the product to RM20 per unit, starting July 2019. The marketing department of Bintang Berhad has submitted the following sales forecast for the upcoming year 2019 as follows: Quarter 1 Sales Demand 2 12,000 3 14,000 11,000 4 13,000 The company expects to start the first quarter with 1,650 units in finished goods inventory. It is the company's policy to hold stocks of finished goods at the end of each quarter equals to 15% of the next quarter's budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. The beginning raw materials inventory for the first quarter is budgeted to be 1,400 kg. Each unit of product BFF requires 2 kg of raw material that costs RM1.40 per kg. The management's policy is to hold ending inventory of raw materials equal to 10% of the following quarter's production needs. The desired ending raw material inventory for the fourth quarter is 1,500 units Each unit of product BFF requires 1.5 hours of skilled labour and 0.5 hours of unskilled labour The skilled labours and unskilled labours are paid at RM14.00 and RM10.00 per hour respectively. Required: a. Prepare the sales budget of Bintang Berhad for each quarter of the upcoming year 2019. b. Prepare the production budget of Bintang Berhad for each quarter of the year 2019. c. Prepare the raw material budget in kgs and value of Bintang Berhad for each quarter of the year 2019. d. Prepare the direct labour budget in hours and value of Bintang Berhad for each quarter of the year 2019