Sales in December XXXXXXXXXXwere 4000 units @ sar10 per unit. Monthly sales for the first four months of the next year XXXXXXXXXXare forecasted as follows: Months units January 5,000 February 8,000...

Sales in December (2019) were 4000 units @ sar10 per unit.
Monthly sales for the
first four months of the next year (2020) are forecasted as follows:

                  Months                                          units

January                                          5,000

                  February                                        8,000

                  March                                            6, 000

                  April                                              5, 000

Unit selling price SAR 10

The following information given to you as follows:

• Normally 60% of sales are collected in the month incurred and the remainders are
  collected in the month following the sales.
  


• Dallah groups wants closing stock equals 10% of the following month’s budgeted sales in units. on December 31 st , 400 units  were on hand.


• Material required for the required production units  are 3,500 Mts , 4,500 Mts., and 6,500 Mts. Respectively for the month of January , February and march

The cost of 1 Mts of material is SAR 10.

• 1 Labor hour will be taken for each unit of production and labor cost per hour is SAR 2


• Unit Variable manufacturing overhead is SAR 3 and fixed manufacturing overhead cost is SAR 1,000 for every month.


• The cash balance as on December 2019 is SAR 100,000.

Required:

Using the data given above, prepare the following detailed schedules along with other supportive schedules for the First quarter (JAN- FEB –MARCH) of the year 2020.

• Sales budget


• Production budget


• Production cost budget


• Cash budget

Supportive schedules

1. Cash collection schedule


2. Direct material schedule


3. Direct labor schedule


4. Variable manufacturing cost schedule.