Source Sdn Bhd was established by Puan Heliza in 2018. The company produces and sells special homemade spicy black sauce throughout Malaysia. The average sale for 2021 is 80,000 units for each quarter. Budget of 2022 Estimated sales for the year 2022 are as follows:  Sales for the first quarter would be 35% higher than the 2021 average quarterly sales.  Sales for the second quarter are forecasted to be 15% higher than sales in Quarter 1.  For the third and fourth quarter, the sales are expected to increase by 25% and 40% respectively from its previous quarters. These sales figures are expected to be the same for the next two years of projection. One bottle of spicy black sauce sells for RM9.00. 20% of the budgeted sales units of the next quarter are to be maintained as the closing stock of the finished goods. The balance of finished goods inventory from 2021 is expected to be 19,000 units. The price of material A used in producing 1 bottle of spicy sauce is expected to be RM3.50 per kg. One unit of special spicy black sauce needs 2 kilograms of material A. As a means to reduce cost associated with inventory and to overcome sudden surge in demand, the company keeps 5% of the quarter's production needs as closing inventories for its supplies. It is targeted that the company will have 20,000 kilograms of material at the beginning of 2022. The firm's record reveals that a worker spends approximately 45 minutes to produce one bottle of spicy black sauce and they are paid at a rate of RM3.50 per hour. 

Required: Prepare for the company its sales, production, direct materials and direct labor budget for the year 2022 in quarter and in total. (Note: Show all calculations.)

Answer rating: 100% (QA)

Sales Budget Average sales for ... View the full answer