MA Bhd is preparing its annual budget for the year ended 31 December 2022. It makes and sells one product for RM200 per unit. It proposes to increase the price to RM220 per unit from 1 July 2022. The expected sales for each quarter of 2022 are as follows;

Quarter 1 Quarter 2 Quarter 3 Quarter 4 40,000 units 50,000 units 30,000 units 40,000 units

Sales for each quarter for the year 2023 are expected to be 45,000 units. Standard costs and usage of raw material per unit of output are:

1. A 4 units at RM5 per unit

2. B 3 units at RM4 per unit

3. C 2 units at RM10 per unit

On 31 December 2021, the stocks for the finished goods and materials are expected to be :

Finished goods : Material A : Material B : Material C :

4,000 units 4,000 units 6,500 units 1,000 units

Closing stocks at the end of each quarter are to be as follows : Finished goods : 10% of next quarter’s sales

Required :

Prepare the following budgets for each quarter for the year ending 31 December 2022, and for the year in total.

1. (i) Sales budget (in units and RM)

2. (ii) Production budget (in units)

3. (iii) Materials usage budget (in units)

Answer rating: 100% (QA)

MA Bhd Sales Budget For the Year Ending December 31 2022 a Budgeted sales units Budgeted sales price ... View the full answer