QUESTION FIVE Preston Ltd is preparing budgets for the four month period beginning 1 July 2008....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
QUESTION FIVE Preston Ltd is preparing budgets for the four month period beginning 1 July 2008. It produces one product, the standard variable costs of which are as follows: K per unit Material 20 6 Labour Overhead 3 The budgeted production in units is: September July August 5,000 5,000 4,500 The budgeted sales in units are: October 4,000 July August September 4,000 4,000 4,500 In June 2008, production is expected to be 3,000 units and sales are expected to be 3,500 units. October 5,000 The following information is also available: a) The standard selling price per unit is K40. b) Material purchases are on credit and are paid for one month after usage. Material is delivered on a Just in Time basis. c) Labour is paid in the month incurred on production. d) Variable overhead cost is paid in the month after incurred on production. e) Fixed overheads are K10,000 per month, of which K5,000 relates to depreciation, these amounts have been constant for some time. f) 20% of the sales are for cash, the remainder is received in the month after the sales are made. g) The cash balance on 1 July is expected to be K15.000 overdrawn. 17 Required: Prepare a cash budget for each of the four months July to October 2008 QUESTION FIVE Preston Ltd is preparing budgets for the four month period beginning 1 July 2008. It produces one product, the standard variable costs of which are as follows: K per unit Material 20 6 Labour Overhead 3 The budgeted production in units is: September July August 5,000 5,000 4,500 The budgeted sales in units are: October 4,000 July August September 4,000 4,000 4,500 In June 2008, production is expected to be 3,000 units and sales are expected to be 3,500 units. October 5,000 The following information is also available: a) The standard selling price per unit is K40. b) Material purchases are on credit and are paid for one month after usage. Material is delivered on a Just in Time basis. c) Labour is paid in the month incurred on production. d) Variable overhead cost is paid in the month after incurred on production. e) Fixed overheads are K10,000 per month, of which K5,000 relates to depreciation, these amounts have been constant for some time. f) 20% of the sales are for cash, the remainder is received in the month after the sales are made. g) The cash balance on 1 July is expected to be K15.000 overdrawn. 17 Required: Prepare a cash budget for each of the four months July to October 2008
Expert Answer:
Answer rating: 100% (QA)
Working notes Sales units Selling price per unit Total sales Cash sales Collections of prior months ... View the full answer
Related Book For
Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman
Posted Date:
Students also viewed these accounting questions
-
The BestCrackers company produces and sells organic garlic crackers. The one- pound family size bag of crackers has two direct materials - flour and packaging. The production process includes making,...
-
Royal Company is preparing budgets for the quarter ending June 30. The marketing department of Royal Company prepares the following information that will be used to prepare a budget for the quarter...
-
The following details are available from XY company, calculate Cash flow from Operating Activities: LIABILITIES Share capital Debentures Reserve for doubtful debts Trade creditors Profit and Loss A/c...
-
Look at the following code. Which line will cause a compiler error? Explain why. Line 1 public class ClassA Line 2 { Line 3 public ClassA () {} Line 4 public final int methodl (int a) () Line 5...
-
In 2010, Quapau Products introduced a new line of hot water heaters that carry a one-year warranty against manufacturer's defects. Based on industry experience, warranty costs were expected to...
-
The following information is for Neopolitan Ltd. in July: 1. Cash balance per bank, July 31, $8,833 2. Cash balance per books, July 31, $7,190 3. Bank service charge, $24 4. Deposits in transit,...
-
The transactions for Crazy Curlz, Inc., for the month of June 2010 have been posted to the accounts as follows: Requirements 1. Prepare the journal entries that served as the sources for the six...
-
Emrich Processing is a small custom stainless steel parts processor. Customers send new and used stainless steel parts to Emrich for cleaning in various acid baths to remove small imperfections or...
-
Analyze the data and fill in the table below [4] Mass Mean 0.1 kg Acceleration a (m/s) SEOM Result reported as 1 kg ii. Does the experiment support the hypothesis? What is your reason? [3] Answer:...
-
A cone rolls without slipping on a table. The half-angle at the vertex is ?, and the axis of the cone has length h (see Fig.). Let the speed of the center of the base (label this as point P) be v....
-
1. Most people demand goods and services much less than they want. True or False? Explain your answer.
-
Discuss the measurable outcomes of a successful business letter campaign. How can you track responses, conversions, or other relevant metrics to evaluate the effectiveness of your communication?
-
ABC corp. issues a 7 year $1,000 face value bond that has an annual coupon rate of 8.44% and pays interest semi-annually. Similar bonds are offering a yield to maturity of 12.9%. What should be the...
-
1) What is the magnitude of the net force on the object? 2) If the pulley has an angular acceleration of 19.7 rad/s 2 what is the magnitude of the linear acceleration of the test object? 3) What is...
-
A potential client has sent an RFI seeking details about your companys capabilities. Draft a business letter that concisely provides the requested information, highlights relevant experience, and...
-
A customer has outstanding payments beyond the due date. Create a collection letter that balances firmness with professionalism, reminding the customer of the debt and outlining consequences if...
-
My physics teacher had unusually high expectations; she always _______ the best efforts from everyone. (A) aggravated (B) demanded (C) discouraged (D) intended (E) alleviated Question 1 of 30 Select...
-
Sportique Boutique reported the following financial data for 2012 and 2011. Instructions(a) Calculate the current ratio for Sportique Boutique for 2012 and 2011.(b) Suppose that at the end of 2012,...
-
In October, Huttunen Company had the following cost flows: Required: 1. Prepare the journal entries to transfer costs from (a) moulding to grinding, (b) grinding to finishing, and (c) finishing to...
-
Mount Royal Company produces two types of jackets for equipment. Information concerning the two products follows: Additionally, the following overhead costs are reported for the activities associated...
-
Flex Company uses activity-based costing to determine the costs of its products. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows:...
-
Which of the following graphs would be best to use to display the percentages of diagnoses seen at your mental health center? a. Frequency polygon b. Pie graph c. Bar graph d. Line graph
-
Physicians from the Community Physician's Clinic would like to demonstrate to the Community Hospital administration that additional exam rooms are needed to accommodate their patients. They ask the...
-
What type of numerical data contains only a finite number of results? a. Continuous b. Discrete c. Interval d. Ratio
Study smarter with the SolutionInn App