Makails Chocolate Limited is a manufacturer of premium chocolate bars. The manager of the company has provided
Question:
Makails Chocolate Limited is a manufacturer of premium chocolate bars. The manager of the company
has provided you with the following information & asked for your assistance in preparing the master budget
the last quarter of
Budgeted sales for the October to January are as follows:
October
November
December
January
The selling price is $ unit
Sales are on credit and are collected in month of sale & in month following the sale.
Accounts receivable are expected to be $ on September & will be collected in October.
At the end of September there are expected to be units of finished goods inventory on hand.
The desired ending inventory of finished goods is of the next month's budgeted sales.
Makails Chocolate pays for of their direct materials in the month of purchase & in the following
month. The Accounts payable balance is expected to be $ at September & will be
paid in October.
The cost per kg of direct materials is $
The company plans to pay a dividend of $ in October.
Each unit produced requires hours of direct labour at a cost of $hour
They plan to purchase equipment costing $ in December.
Makails Chocolate Limited plans to purchase equipment costing $ in November for cash.
The company wishes to maintain a minimum cash balance of $ at the end of each month.
The company has an agreement with the local bank that allows them to borrow up to $
The interest rate on the loans is and there are no loans outstanding at September All
borrowing is done at the start of the month and all repayments are made at the end of the month.
Interest is paid at the same time the loan is paid back.
The cash balance at September is budgeted to be $
The cost of goods sold for the quarter is $
Required:
Using the excel file included in the assignment complete the following budgets for the
the last quarter of October November & December for Makails Chocolate Limited:
Sales Budget & Schedule of Expected Cash Collections
Production Budget
Direct Materials Cash Disbursements Budget
Direct Labour Budget
Cash Budget
Note Some of the parts of the master budget have been completed for you.
Complete the budgeted income statement for the quarter ended December
What will the accounts receivable & accounts payable balances be at December
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson