I CANNOT UNDERSTAND TO FIND QUARTER 1 & 2 CLOSING STOCK . Question a) i ?

CONFIDENTIAL 2 ACIDCT 2019mAF551 QUESTION 1 Segarria Sdn Bhd manufactures two types of fumiture, namely 81 and A1. Both products consume raw material KA. The company is required to prepare its master budget for the year ended 31 December 2020. The budget is basically prepared on quarterly basis and the production manager of the company has provided the following data which have been approved by the executives in the budget committee. Estimation for the rst quarter of 2020: 51 A1 Expected sales in (units) 50,000 10,000 Selling price per unit (RM) 50.00 80.00 Planned o nin stock unit 3.000 1,000 The sales of both products are expected to increase by 5% each quarter. Starting 2020, the company plans to maintain stock at the end of each quarter to be 4% of the following quarter's sales. a) Prepare the following budgets for Quarter 1 and Quarter 2 for year ended 31 December 2020: Production budget Material usage budget iii) Material purchase budget iv) Direct labour cost budget (12 marks) b ) Discuss any TWO (2) behavioural issues in budgeting system. (4 marks) (Total: 16 marks) @ Hak Cipta Universiti Teknologi MARA CONFIDENTIAL