Solve all the questions Required:a.Prepare the following budgets of Arjuna Sdn Bhd for each of the four quarters for the yearending 31 December 2017.i.Production Budget ( in units)ii.Material Usage Budget (in units)iii.Production Cost Budget (in RMs) Arjuna Sdn Bhd is preparing its annual budgets for the year to 31 December 2016. Itmanufactures and sells one product, which has a selling price of RM130. The marketingDirector believes that the prices can be increased to RM140 with effect from 1 July 2016 andthat at this price the sales volume for each quarter of 2016 will be as follows:Sales VolumeQuarter 1Quarter 2Quarter 3Quarter 430,00040,00020,00035,000Sales for each quarter 2017 are expected to be 30,000 units. Each unit of the finished productrequires four units of components A and three units of component B, together with a bodyshell C (Component C). These items are purchased from an outside supplier and their currentprices are:RMComponent AComponent BComponent C7.00 each4.00 each20.00 eachThe component are expected to increase price by 10% with effect from 1 April 2016, nochange is expected for the price of the shell. Assembly of the shell and components into thefinished product requires 6 labour hours; labour is currently paid RM5.00 per hour. A 4%increase in wage cost is anticipated to take effect from 1 October 2016.Variable overhead costs are expected to be RM9 per unit for the whole of year 2016, fixedproduction overhead costs are expected to be RM240,000 for the year and are absorbed on aper unit basis. Stocks on 31 December 2015 are expected to be as follows:Finished units8,000 unitsComponent AComponent BComponent C2,000 units4,500 units400 unitsClosing stocks at the end of each quarter are to be as follows:10% of next quarter’s sales20% of next quarter's production requirement.15% of next quarter’s production requirement10% of next quarter's production requirementFinished unitsComponent AComponent BComponent C

Production Budget is a schedule prepared by a manufacturing business to calculate the budgeted…

a.Prepare the following budgets of Arjuna Sdn Bhd for each of the four quarters for the year ending 31 December 2017. i. Production Budget ( in units) ii. Material Usage Budget (in units) iii. Production Cost Budget (in RMs)

a.Prepare the following budgets of Arjuna Sdn Bhd for each of the four quarters for the year ending 31 December 2017. i. Production Budget ( in units) ii. Material Usage Budget (in units) iii. Production Cost Budget (in RMs)

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 1E: The sales department of Macro Manufacturing Co. has forecast sales for its single product to be...

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