QUESTION 4 (25 MARKS) Nancy Company produces and sells two products (P and Q) which require...

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QUESTION 4 (25 MARKS) Nancy Company produces and sells two products (P and Q) which require two types of material (X and Y) and two grades of labor (Skilled and Semi-skilled). You are given the following information relating to budget for coming year ending 31 December 2022: Sales: Product P Units Per unit (RM) 10,000 130 12,000 100 Q Direct materials: Material X (RM6.80 per kg) Y (RM8.24 per liter) Direct labor: Labor Product P (Per unit) Q (Per unit) 2 kg 3 liters 1 kg 2 liters Skilled (RM12.50 per hour) Semi-skilled (RM9.80 per hour) Inventory holding: Product Q (Per unit) 0.80 hour 1.75 hours P (Per unit) 1.20 hours 1.60 hours Opening inventory Closing inventory Product P 2,000 units 2,500 units Product Q 2,400 units 1,800 units Material X 5,000 kg 4,250 kg Material Y 8,550 liters 9,500 liters Required: Prepare the following functional budgets for the coming year ending 2022: a) Sales budget b) Production budget c) Direct materials budget d) Direct labor budget (4 MARKS) (4 MARKS) (10 MARKS) (7 MARKS) QUESTION 4 (25 MARKS) Nancy Company produces and sells two products (P and Q) which require two types of material (X and Y) and two grades of labor (Skilled and Semi-skilled). You are given the following information relating to budget for coming year ending 31 December 2022: Sales: Product P Units Per unit (RM) 10,000 130 12,000 100 Q Direct materials: Material X (RM6.80 per kg) Y (RM8.24 per liter) Direct labor: Labor Product P (Per unit) Q (Per unit) 2 kg 3 liters 1 kg 2 liters Skilled (RM12.50 per hour) Semi-skilled (RM9.80 per hour) Inventory holding: Product Q (Per unit) 0.80 hour 1.75 hours P (Per unit) 1.20 hours 1.60 hours Opening inventory Closing inventory Product P 2,000 units 2,500 units Product Q 2,400 units 1,800 units Material X 5,000 kg 4,250 kg Material Y 8,550 liters 9,500 liters Required: Prepare the following functional budgets for the coming year ending 2022: a) Sales budget b) Production budget c) Direct materials budget d) Direct labor budget (4 MARKS) (4 MARKS) (10 MARKS) (7 MARKS)