Big Boss Limited was formed two years ago by Joshua Scalers. He had the idea to...

   

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Big Boss Limited was formed two years ago by Joshua Scalers. He had the idea to make a product for Quick Service Restaurants that would be easy and convenient to prepare. He bought several used plant and equipment from a company that was involved in making a similar product but was leaving the industry. Big Boss estimated that the equipment would be able to last for 10 years once it was properly maintained. He called his finished product "Sweet" The budget for the next four months ending 31 July 2023 is to be prepared. The following data was gathered [A]Projected Statement of Financial Position as at 31 March 2023 ASSETS Non-current Assets Plant and equipment at cost Less Accumulated depreciation Current Assets Raw materials Finished goods Accounts Receivables Cash EQUITIES AND LIABILITIES Capital Share capital Accumulated profits (Retained Earnings) Current Liabilities Accounts Payables [B] Sales and production data Sales demand for finished goods April May Jane July August Selling price per unit Finished goods for production Processing Cost per her for variable overhead Fixed production overhead per month including depreciation of $8,000 Projected closing inventory at 31 March 2023 Unit cost of finished goods inventory Variable production overhead -direct labour hours required Material requirement per unit Raw material Direct labour hours required per unit Direct labour rate per hour 1,440,000 288.000 1.152.000 30,750 38.750 200,000 $54,250 S 823.750 1.975.750 1.147.300 600,000 1,747,300 228.450 1975.750 5,000 units 7.500 units 12.500 units 15,000 units 12.000 units $200 250 units $155 per unit 12 min 550 per hour $45,000 0.40 lbs 12 minutes $100 per hour Required: 1. Prepare the following budgets for Best Friends Pre-season Limited by month and in total for the four months ending July 31, 2023: (a) Sales budget. (6 marks) (10 marks) (17 marks) (23% marks) (10 marks) (9% marks) (b) Schedule of cash collected from customers. (c) Production budget. (d) Direct-material usage and purchases budget. (e) Schedule of cash disbursement to suppliers for direct material. (f) Direct labour budget. (g) Production overhead budget. (h) Selling and administrative budget (i) Cash budget 2. Prepare the following budgets in total only for the four months ending July 31, 2023: (a) Cost of goods sold budget. (b) Budgeted Statement of Profit or Loss. (e) Budgeted Statement of Financial Position. (11 marks) (11 marks) (25% marks) (8 marks) (5 marks) (13% marks) Big Boss Limited was formed two years ago by Joshua Scalers. He had the idea to make a product for Quick Service Restaurants that would be easy and convenient to prepare. He bought several used plant and equipment from a company that was involved in making a similar product but was leaving the industry. Big Boss estimated that the equipment would be able to last for 10 years once it was properly maintained. He called his finished product "Sweet" The budget for the next four months ending 31 July 2023 is to be prepared. The following data was gathered [A]Projected Statement of Financial Position as at 31 March 2023 ASSETS Non-current Assets Plant and equipment at cost Less Accumulated depreciation Current Assets Raw materials Finished goods Accounts Receivables Cash EQUITIES AND LIABILITIES Capital Share capital Accumulated profits (Retained Earnings) Current Liabilities Accounts Payables [B] Sales and production data Sales demand for finished goods April May Jane July August Selling price per unit Finished goods for production Processing Cost per her for variable overhead Fixed production overhead per month including depreciation of $8,000 Projected closing inventory at 31 March 2023 Unit cost of finished goods inventory Variable production overhead -direct labour hours required Material requirement per unit Raw material Direct labour hours required per unit Direct labour rate per hour 1,440,000 288.000 1.152.000 30,750 38.750 200,000 $54,250 S 823.750 1.975.750 1.147.300 600,000 1,747,300 228.450 1975.750 5,000 units 7.500 units 12.500 units 15,000 units 12.000 units $200 250 units $155 per unit 12 min 550 per hour $45,000 0.40 lbs 12 minutes $100 per hour Required: 1. Prepare the following budgets for Best Friends Pre-season Limited by month and in total for the four months ending July 31, 2023: (a) Sales budget. (6 marks) (10 marks) (17 marks) (23% marks) (10 marks) (9% marks) (b) Schedule of cash collected from customers. (c) Production budget. (d) Direct-material usage and purchases budget. (e) Schedule of cash disbursement to suppliers for direct material. (f) Direct labour budget. (g) Production overhead budget. (h) Selling and administrative budget (i) Cash budget 2. Prepare the following budgets in total only for the four months ending July 31, 2023: (a) Cost of goods sold budget. (b) Budgeted Statement of Profit or Loss. (e) Budgeted Statement of Financial Position. (11 marks) (11 marks) (25% marks) (8 marks) (5 marks) (13% marks)

Answer rating: 100% (QA)

A Projected Statement of Financial Position as at 31 March 2023 Assets Amount ZMW Noncurrent Assets Plant and equipment at cost 1440000 Less Accumulated depreciation 288000 Net Plant and equipment 115... View the full answer