Please assist to construct a cash budget in detail.
* Please take note that there is variable manufacturing overhead cost and do we need to include this in the cash budget?
Extracted text: Financial information pertaining to Alya Sdn Bhd above follows: • Beginning cash balance is RM1,800,000 • Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarter's sales were RM8,400,000. There are no bad debts. Purchases of direct materials and labor costs are paid for in the quarter acquired. • Manufacturing overhead expenses are paid in the quarter incurred. • Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are budgeted at RM340,000 per quarter, including RM90,000 of depreciation. Required: Refer to the sales budget prepared in Task 1. Construct a cash budget for Alya Sdn Bhd for the quarter ending 30th September 2021.
Extracted text: Question Alya Sdn Bhd. manufactures and supplies granite pots and pans with glass lids to a company in Japan. The new manager, Rushdi, wants to monitor the quarterly budgets for the quarter ending 30th September 2021 to ensure the sales targeted can be executed as planned even with the current economic condition. The following information is available: Budgeted sales: POTS 60,000 units @RM100 each PANS 40,000 units @RM125 each Budgeted inventories: Ending 25,000 10,000 36,000 kg 32,000 kg 7,000 units Beginning Pots 20,000 Pans 8,000 Direct material (Granite) Direct material (Glass) Direct material (Handles) 32,000 kg 29,000 kg 6,000 units +tandard variable costs: POTS PANS Direct materials: 5kg @RM8.00
[email protected] RM40.00 4kg @RM8.00 15.00
[email protected] Granite RM32.00 Glass 15.00 Handles 1 @RM3.00 3.00 Total materials 58.00 47.00 Direct labour
[email protected] 24.00
[email protected] 48.00 Variable manufacturing overhead
[email protected] 3.00
[email protected] 4.50 Total 85.00 99.50 Variable manufacturing overhead cost is RM384,000, while fixed factory overhead is RM214,000 per quarter (including the non-cash expenditure of RM156,000) and is allocated on total units produced.