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? 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 nextperiod. 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 arebudgeted 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 ending30th September 2021. QuestionAlya Sdn Bhd. manufactures and supplies granite pots and pans with glass lids to a company in Japan. Thenew manager, Rushdi, wants to monitor the quarterly budgets for the quarter ending 30th September 2021to ensure the sales targeted can be executed as planned even with the current economic condition. Thefollowing information is available:Budgeted sales:POTS60,000 units @RM100 eachPANS40,000 units @RM125 eachBudgeted inventories:Ending25,00010,00036,000 kg32,000 kg7,000 unitsBeginningPots20,000Pans8,000Direct material (Granite)Direct material (Glass)Direct material (Handles)32,000 kg29,000 kg6,000 units+tandard variable costs:POTSPANSDirect materials:5kg @RM8.003kg@RM5.00RM40.00 4kg @RM8.0015.00 3kg@RM5.00GraniteRM32.00Glass15.00Handles1 @RM3.003.00Total materials58.0047.00Direct labour2hours@RM12.0024.00 3hours@RM16.0048.00Variable manufacturingoverhead2hours@RM1.503.00 3hours@RM1.504.50Total85.0099.50Variable 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.

Budgeting is a tool which is used in the controlling process of an organisation. It also helps in…

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.

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.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 51E

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