You are required to prepare a budget for the year ending 2022: I. Sales budget (3 marks) II. Production budget (3 marks) III. Purchase budget and direct use of raw materials (3 marks) IV. Direct labor budget (3 marks) V. Manufacturing overhead budget (3 marks) VI. Final stock budget (3 marks) VII. Cost of sales budget (3 marks) VIII. Support section budget (3 marks) IX. Income statement budget for 2022 (3 marks)

Syarikat Woody Sdn Bhd is a manufacturer of furniture made from teak wood. Here is the information that has been collected from other sections.

1. The company manager estimates that 420,000 teak tables will be sold at a price of $700 each.

2. According to accounting records, the initial stock of tables from teak wood is 3,700 with the cost of each wooden table being $550.60. The manager is of the opinion that the final stock should be increased to 4,200 units as sales volume is expected to increase.

3. The initial stock of direct raw materials is as follows: $ teak wood 95,000 Nails and components 30,000 Polyurethane paint 65,000 Total 190,000

4. Cost per unit of direct raw material: $ Teak wood 95 Nails and components 30 Polyurethane Paint 65

5. The manager requires the final stock as follows: $ teak wood 80,000 Nails and components 26,500 Polyurethane paint 60,500 Total 167,000

6. Number of hours and direct labor costs: Direct labor Hours Cost per hour Installation 1.5 $ 22 Testing 0.15 $ 12

7. Based on the previous year's operating costs, the overhead costs are: Overhead costs change manufacturing $ Purchase 15.50 Indirect labor 22.00 Maintenance 12.60 Others 7.80 Total 57.60

8. Fixed manufacturing costs are: $ Depreciation 2,750,000 Tax on property 1,660,000 Insurance 1,560,000 Factory supervisor 2,711,000 Fringe benefit 6,231,000 Others 1,270.00 Overhead costs are absorbed into the production quantity budget.

9. The estimated operating costs of the supporting parts which are considered as fixed costs are: $ Administration 14,720,550 Promotion 12,110,170 Delivery 3,190,000 Customer service 1,970,600

10. Income tax on profits is estimated at 27%