The company's executive, Mr

The company's executive, Mr. Amer Shah, has requested your help in preparing a cash budget for the month of June. Mr. Amer Shah accumulated the following information for you: 1. The cash balance at May 1 was estimated to be RM60,000 ii. Actual sales of April and May and budgeted sales for June are as follows: April (RM) May (RM) June (RM) Cash sales 99,000 93,000 105,000 Credit sales 180,000 240,000 300,000 Total sales 279,000 333,000 405,000 Credit sales are collected over a two-month period. With 60% being collected in the same month of sales and the remainder being collected next month. Inventory purchased are expected to 80% out of the credit sales. The 30% payment made to suppliers in the month of purchases and the balance will be made next month. iv V vi. Selling and administrative expenses are budgeted to be RM84.000 every month. Out of that amount, 20% is depreciation. Equipment costing RM90,000 will be purchased in June by cash. Before that, the old equipment has been sold for RM15,000 in May. Dividends of RM21,000 will be paid in June. The company wants to maintain a minimum cash balance of RM60,000 and has set up a line of credit at the local bank that can be used to cover any shortage. If the company must borrow, the loan will be made at the beginning of the month and any repayment will be made in the following month. vii. viii. Required: a) Prepare a schedule of collection for the month of May and June. b) Prepare cash budget for the month of May and June. (5 marks) (20 marks) (Total: 25 Marks)
Question 2 At the beginning of the year, Beastboy Sdn Bhd had the following standard cost sheet for one of its best selling product RM Direct materials (7 kg at RM6 per kg) 42 Direct labor (3 hours at RM15 per hour) Standard prime cost per unit 45 60 The actual results for the year are as follows: Units produced 400,000 units Materials purchased 2,660,000 kg at RM6.15 per kg Material used 2,450,000 kg Direct labor 1,230,000 hours at RM14.50 per hour Required: a) Compute the material price variance. Explain your answer. b) Compute the materials quantity variance. Explain you answer. c) Compute the labor rate variance. Explain your answer. d) Compute the labor efficiency variance.