1) 10% of sales are for cash, the balance is received the following month. The amount to...
Question:
1) 10% of sales are for cash, the balance is received the following month. The amount to be received in June for May?s sales is ?28,500
2) Wages are paid two months in arrears. Wages for April and May are ?14,500 and ?12,000 respectively.
3) Overheads for June, July, August and September include ?1,500 per month for depreciation. Overheads are settled in the month following. ?5,500 is to be paid in June for May?s overheads
4) Purchases of direct materials are paid for in the month purchased
5) The opening cash balance is ?14,750
6) A tax bill of ?24,000 pertaining to an earlier period, is to be paid in July
Required:
a) Calculate the amount of direct material purchases in each of the months for June, July, August and September.?
b) Prepare the monthly Cash Budget for June, July, August and September.?
c) Prepare the Budgeted Profit and Loss Statement for the period June to September. Ignore the tax bill in preparing your Profit and Loss Statement.?
?Financial Accounting
ISBN: 978-0133427530
10th edition
Authors: Walter Harrison, Charles Horngren, William Thomas