Financial information pertaining to Alya Sdn Bhd above follows: • Beginning cash balance is RM1,800,000 • Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarter's sales were RM8,400,000. 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 RM340,000 per quarter, including RM90,000 of depreciation. Required: Refer to the sales budget prepared in Task 1. Construct a cash budget for Alya Sdn Bhd for the quarter ending 30th September 2021.
Financial information pertaining to Alya Sdn Bhd above follows: • Beginning cash balance is RM1,800,000 • Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarter's sales were RM8,400,000. 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 RM340,000 per quarter, including RM90,000 of depreciation. Required: Refer to the sales budget prepared in Task 1. Construct a cash budget for Alya Sdn Bhd for the quarter ending 30th September 2021.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Please assist to construct a
* Please take note that there is variable
Transcribed Image Text:Financial information pertaining to Alya Sdn Bhd above follows:
• Beginning cash balance is RM1,800,000
• Sales are on credit and are collected 50 percent in the current period and the remainder in the next
period. Last quarter's sales were RM8,400,000. 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 RM340,000 per quarter, including RM90,000 of depreciation.
Required:
Refer to the sales budget prepared in Task 1. Construct a cash budget for Alya Sdn Bhd for the quarter ending
30th September 2021.
Transcribed Image Text:Question
Alya Sdn Bhd. manufactures and supplies granite pots and pans with glass lids to a company in Japan. The
new manager, Rushdi, wants to monitor the quarterly budgets for the quarter ending 30th September 2021
to ensure the sales targeted can be executed as planned even with the current economic condition. The
following information is available:
Budgeted sales:
POTS
60,000 units @RM100 each
PANS
40,000 units @RM125 each
Budgeted inventories:
Ending
25,000
10,000
36,000 kg
32,000 kg
7,000 units
Beginning
Pots
20,000
Pans
8,000
Direct material (Granite)
Direct material (Glass)
Direct material (Handles)
32,000 kg
29,000 kg
6,000 units
+tandard variable costs:
POTS
PANS
Direct materials:
5kg @RM8.00
3kg@RM5.00
RM40.00 4kg @RM8.00
15.00 3kg@RM5.00
Granite
RM32.00
Glass
15.00
Handles
1 @RM3.00
3.00
Total materials
58.00
47.00
Direct labour
2hours@RM12.00
24.00 3hours@RM16.00
48.00
Variable manufacturing
overhead
2hours@RM1.50
3.00 3hours@RM1.50
4.50
Total
85.00
99.50
Variable manufacturing overhead cost is RM384,000, while fixed factory overhead is RM214,000 per quarter
(including the non-cash expenditure of RM156,000) and is allocated on total units produced.
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