Woody Sdn Bhd is a manufacturer of furniture made from teak wood. Here is the information that
Question:
Woody Sdn Bhd is a manufacturer of furniture made from teak wood. Here is the information that has been collected from other sections.
1. The company manager estimates that 420,000 teak tables will be sold at a price of RM700 each.
2. According to accounting records, the initial stock of tables from teak wood is 3,700 with the cost of each wooden table being RM550.60. The manager is of the opinion that the final stock should be increased to 4,200 units as sales volume is expected to increase.
3. The initial stock of direct raw materials is as follows:
RM | |
Teak Wood | 95,000 |
Wood and Components | 30,000 |
Polyurethane Paint | 65,000 |
Total | 190,000 |
4. Cost per unit of raw material
RM | |
Teak Wood | 95 |
Wood and Components | 30 |
Polyurethane Paint | 65 |
5. The manager wants final stock
RM | |
Teak Wood | 80,000 |
Wood and Components | 26,500 |
Polyurethane Paint | 60,500 |
Total | 167,000 |
6. Total hours and cost of labour
| Direct Labour | Hours | Cost per Hour |
| Installment | 1.5 | RM22 |
| Testing | 0.15 | RM12 |
7. Based on the previous year's operating costs, the overhead costs are:
Overhead costs change manufacturing:
RM | |
Purchase | 15.50 |
Indirect Labour | 22.00 |
Maintenance | 12.60 |
Others | 7.80 |
Total | 57.60 |
8. Fixed cost of manufacturing
RM | |
Depreciation | 2,750,000 |
| Tax on Property | 1,660,000 |
Insurance | 1,560,000 |
Factory Supervisor | 2,711,000 |
Fringe benefit | 6,231,000 |
Others | 1,270,00 |
9. The estimated operating costs of the support part that are treated as fixed costs are:
RM | |
Administration | 14,720,550 |
Promotion | 12,110,170 |
Delivery | 3,190,000 |
Customer Service | 1,970,600 |
10. Income tax on profits is estimated at 27%
PLEASE ANSWER THE ANSWER BELOW, THANK YOU:
I. Sales budget
II. Production budget
III. Purchase budget and direct use of raw materials
IV. Direct labor budget
V. Manufacturing overhead budget
VI. Final stock budget
VII. Cost of sales budget
VIII. Support section budget
IX. Income statement budget for 2022
Expert Answer:
I Sales budget The company expects to sell 420000 teak tables at a price of RM700 each for a total of 420000700 RM294000000 in sales II Production bud... View the full answer
