Sweetfume Sdn Bhd produces two types of perfumes known as Breezy and Misty. Both products use...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Sweetfume Sdn Bhd produces two types of perfumes known as Breezy and Misty. Both products use similar types of materials which are ethanol and essential oil. The production manager of the company has provided the data to assist in the preparation of the company's budget for the coming year. The followings are the detailed information about the budgeted data for the year ending 31 December 2022. 1. 2. 3. 4. 5. i. ii. The budgeted sales volumes of Breezy and Misty for the year are 10,000 units and 12,000 units respectively. The selling price is RM65 per unit for Breezy and RM55 per unit for Misty. Standard usage of material for one unit of product: Misty 50 ml 10 ml iv. Ethanol Essential oil Ethanol Essential Oil Cost of inventories of material ethanol and essential oil are as follows: Opening inventories RM13,200 RM8,000 Closing inventories RM10,800 RM5,000 Breezy 60 ml 15 ml Breezy Misty The company hires two types of labour which are skilled and semi-skilled labour. Skilled labour will be paid at RM7.00 per hour and semi-skilled labour will be paid at RM5.00 per hour. The required labour hours for each product are as follows: Breezy Misty Skilled labour 2 hours per unit 1 hours per unit The opening inventories of finished goods are as follows: Opening inventories Cost per litre RM30 RM50 1200 1000 Semi-skilled labour 3 hours per unit 2 hours per unit Required: a. Prepare the following functional budget for year ending 31 December 2022: Inventories of finished goods are to be reduced by 15% from their opening level by the end of 2022. Sales budget Production budget Material usage and purchase budget Direct labour cost budget (skilled labour only) (13 marks) Sweetfume Sdn Bhd produces two types of perfumes known as Breezy and Misty. Both products use similar types of materials which are ethanol and essential oil. The production manager of the company has provided the data to assist in the preparation of the company's budget for the coming year. The followings are the detailed information about the budgeted data for the year ending 31 December 2022. 1. 2. 3. 4. 5. i. ii. The budgeted sales volumes of Breezy and Misty for the year are 10,000 units and 12,000 units respectively. The selling price is RM65 per unit for Breezy and RM55 per unit for Misty. Standard usage of material for one unit of product: Misty 50 ml 10 ml iv. Ethanol Essential oil Ethanol Essential Oil Cost of inventories of material ethanol and essential oil are as follows: Opening inventories RM13,200 RM8,000 Closing inventories RM10,800 RM5,000 Breezy 60 ml 15 ml Breezy Misty The company hires two types of labour which are skilled and semi-skilled labour. Skilled labour will be paid at RM7.00 per hour and semi-skilled labour will be paid at RM5.00 per hour. The required labour hours for each product are as follows: Breezy Misty Skilled labour 2 hours per unit 1 hours per unit The opening inventories of finished goods are as follows: Opening inventories Cost per litre RM30 RM50 1200 1000 Semi-skilled labour 3 hours per unit 2 hours per unit Required: a. Prepare the following functional budget for year ending 31 December 2022: Inventories of finished goods are to be reduced by 15% from their opening level by the end of 2022. Sales budget Production budget Material usage and purchase budget Direct labour cost budget (skilled labour only) (13 marks)
Expert Answer:
Related Book For
Cost Management Accounting and Control
ISBN: 978-0324559675
6th Edition
Authors: Don R. Hansen, Maryanne M. Mowen, Liming Guan
Posted Date:
Students also viewed these finance questions
-
The production manager of Videotechnics Company is attempting to determine the upcoming 5-month production schedule for video recorders. Past production records indicate that 2,000 recorders can be...
-
Gunther Company Ltd. produces two types of machinery parts, W and G, both of which require the same raw material in their respective production processes. The following are the budgeted standard unit...
-
Lifemaster produces two types of exercise treadmills: regular and deluxe. The exercise craze is such that Lifemaster could use all its available machine hours to produce either model. The two models...
-
Lauren Smith was relaxing after work with a colleague at a local bar. After a few drinks, she began expressing her feelings about her company's new control initiatives. It seems that as a result of...
-
Assume that you are using attribute sampling to test the controls over revenue recognition of the Packet Corporation, a public company, and will use the results as part of the evidence on which to...
-
Insurance industry-specific financial ratios are usually prepared from financial statements prepared under what standards?
-
Panther Racing, LLC, is involved in competitive racing, including the development, maintenance, and operation of a racing team in the IndyCar series. Beginning in 2008, the National Guard annually...
-
TJs, Inc., makes three nut mixes for sale to grocery chains located in the Southeast. The three mixes, referred to as the Regular Mix, the Deluxe Mix, and the Holiday Mix, are made by mixing...
-
How to explain in details the constraints and integrity of the relational model regarding relations and relationships in Database System ?
-
A company manufacturers a product in the United States and sells it in England. The unit cost of manufacturing is $50. The current exchange rate (dollars per pound) is 1.51. The demand function,...
-
calculate the cost of debt and WACC with the formula from the data given below in table. Equity beta Tax rate, Tc Risk-free rate, rf E(rm) Using Historical P/E GOOG WACC Capital structure weight in...
-
You are the senior accountant for a business that regularly imports spare parts for a range of your products from overseas suppliers. You have been instructed by the CEO to look at ways you can save...
-
In which trading centers does 75 percent of all foreign exchange trading take place?
-
What is meant by the term ISO 9000?
-
You are the production director of a manufacturing company. In a highly competitive market, you carry out all of the major manufacturing tasks in a neighboring country as the wage levels there are 40...
-
Syd Gilman read the latest sales figures with a great deal of satisfaction. The vice-president of marketing at Hy Dairies Ltd., a large Canadian milk products manufacturer, was pleased to see that...
-
Budgeted sales for the third quarter of the year for Brown Company are as follows: Cash Collection June Budgeted Sales $350,000 $300,000 375,000 450,000 Total Cash Collected July August September...
-
Identify Thank You mission, strategy and core competencies. Identify strategy changes that have taken place at Thank You since its founding in 2008. Your answer must in text references and must be...
-
What is a tangible product?
-
Elaine Gordon wants to start a business supplying florists with field-grown flowers. She has located an appropriate acreage and believes she can grow daisies, asters, chrysanthemums, carnations, and...
-
Refer to Exercise 12-9. Suppose that for 2010, McCawl Company has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, McCawl...
-
The most appropriate response to Nkomos Question 1 would be that the present value of future residual earnings is expected to be: A. zero. B. positive. C. negative. Mangoba Nkomo, CFA, a senior...
-
The most appropriate response to Nkomos Question 2 would be that the firms return on equity (ROE ) is: A. equal to the firms cost of equity. B. lower than the firms cost of equity. C. higher than the...
-
Based upon the information in Exhibit 2, the intrinsic value per share of the equity of Jackson Breweries is closest to: A. R97.67. B. R130.22. C. R186.03. Mangoba Nkomo, CFA, a senior equity analyst...
Study smarter with the SolutionInn App