Requirement:

Using the data given above, prepare the following detailed schedules along with other supportive schedules for the last quarter (October- November December) of the year 2020.

1. Sales budget
2. Production budget
3. Production cost budget
4. Cash budget

Supportive schedules

1. Cash collection schedule
2. Direct material schedule
3. Direct labor schedule
4. Variable manufacturing cost schedule.

TV tables SAR 1,000 SAR 25 Selling Price per unit Direct Materials (1 Kg of wood timber) cost Kg of wood timber required per unit Direct Labour hour cost Number of labour hours per unit Variable manufacturing overhead per unit 10 SAR 30 3 SAR 20 Additional Information: a) monthly Fixed cost SAR 2500 b) The company had 8 TV tables and 100 kg of wood timber in stock at the end of September. c) Company policy is to maintain 20% of the following months sales level as closing inventory for finished goods. d) Company policy to maintain 25% of next months production needs as closing inventory for direct materials. e) Budgeted sales of TV tables for the next six months are as follows: October November December January February 40 35 20 20 20 f) Cash collections on sales are as follows: 30% in the month of sale 70% in the month following sale Receivables at the end of September were SAR 22,000 g) Cash payments on purchases are as follows: 60% in the month of purchase 40% in the following month Payables at the end of September were SAR 6,000 h) The closing cash balance in September 2020 was SAR 40,000 i) The company paid a dividend of SAR 40,000 in November j) Cash of SAR 50,000 was invested in the company by a private investor in October