Q3 (a) Jati Jentayu Sdn Bhd manufactures and sells furniture that has peak sales in the third month. The following information concerns operations for the year 2022. • The company's single product sells for RM150 per unit. All sales are on credit. The budgeted sales in units for the four months are shown in Table Q3(a). Table Q3(a): Budgeted Sales of Jati Jentayu Sdn Bhd Year 2022 February 1,800,000 12,000 12,600 Month Budgeted sales (RM) Budgeted unit sales Units to be produced . January 1,350,000 9,000 9,200 It takes 3 hours to produce one product. The average wage cost per hour is RM15. Sales are collected in the following pattern: 55% in the month the sales are made. The remaining 45%, in the following month. (b) On 1 January, 2022, the company's balance sheet showed RM75,630 in account receivables, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. (ii) Prepare the following budgets and a schedule for the first quarter of the year, showing both months and total figures: (i) Direct labour budget. March 2,700,000 18,000 18,200 Schedule of expected cash collections. State THREE (3) objectives of budgeting. 1
Q3 (a) Jati Jentayu Sdn Bhd manufactures and sells furniture that has peak sales in the third month. The following information concerns operations for the year 2022. • The company's single product sells for RM150 per unit. All sales are on credit. The budgeted sales in units for the four months are shown in Table Q3(a). Table Q3(a): Budgeted Sales of Jati Jentayu Sdn Bhd Year 2022 February 1,800,000 12,000 12,600 Month Budgeted sales (RM) Budgeted unit sales Units to be produced . January 1,350,000 9,000 9,200 It takes 3 hours to produce one product. The average wage cost per hour is RM15. Sales are collected in the following pattern: 55% in the month the sales are made. The remaining 45%, in the following month. (b) On 1 January, 2022, the company's balance sheet showed RM75,630 in account receivables, all of which will be collected in the first quarter of the year. Bad debts are negligible and can be ignored. (ii) Prepare the following budgets and a schedule for the first quarter of the year, showing both months and total figures: (i) Direct labour budget. March 2,700,000 18,000 18,200 Schedule of expected cash collections. State THREE (3) objectives of budgeting. 1
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 2CE: Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of...
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SUBJECT : PRINCIPLE OF ACCOUNTING
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Transcribed Image Text:Q3
Jati Jentayu Sdn Bhd manufactures and sells furniture that has peak sales in the third
month. The following information concerns operations for the year 2022.
• The company's single product sells for RM150 per unit.
All sales are on credit.
The budgeted sales in units for the four months are shown in Table Q3(a).
Table Q3(a): Budgeted Sales of Jati Jentayu Sdn Bhd
Year 2022
February
1,800,000
12,000
12,600
Month
Budgeted sales (RM)
Budgeted unit sales
Units to be produced
.
January
1,350,000
9,000
9,200
It takes 3 hours to produce one product. The average wage cost per hour is
RM15.
Sales are collected in the following pattern:
55% in the month the sales are made.
The remaining 45%, in the following month.
(b)
On 1 January, 2022, the company's balance sheet showed RM75,630 in account
receivables, all of which will be collected in the first quarter of the year. Bad debts are
negligible and can be ignored.
(ii)
Prepare the following budgets and a schedule for the first quarter of the year, showing
both months and total figures:
(i)
Direct labour budget.
March
2,700,000
18,000
18,200
Schedule of expected cash collections.
State THREE (3) objectives of budgeting.
1
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