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LW Company produces and sells handbags at a selling price of RM300 per unit. During the year, the company estimated production and sales of handbags in units for the upcoming year of 2023 as follow: Production Sales Production Sales January 250 200 July 420 400 February 500 400 August 420 360 March 450 410 September 250 200 April 450 430 October 100 100 May 450 420 320 November 450 360 December 520 June 400 510 The handbags are made from high quality cow's leather which costs RM125 per kilogram. In order to produce each handbag, the company needs 1.5 kilograms of high quality cow's leather. The management of LW Company desires to have 25% of the next month's materials requirements on hand at the end of each month. Continued... Additional information accumulated for the budgeting process is as follow: RM66,500 Direct materials used Direct labour RM80,000 RM45,600 Manufacturing overhead applied Selling and administrative expenses RM66,000 The total unit cost of production is expected to be RM220. LW Company uses the first in, first out (FIFO) inventory method. Ending inventory for year 2022 amounted to RM15,000. Selling and administrative expenses include RM50,000 for depreciation on equipment. Interest expenses is expected to be RM 4,000 for the year. Income taxes are expected to be 30% of income before taxes. Required 1) Prepare the direct materials purchases budget for its third quarter of 2023. 2) Prepare a budgeted Statement of Profit or Loss for the year ended 2023

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