please provide working

Prosalo Limited is considering Its budgets for the six months ending 31 Decamber 1994. All sales will be made at a constant selling price of 25 per unit and sales in units are forecast to be:

Month

July

August

September

October

November

December

Sales in units

20000

25 000

Varlable unil costs are as follows:

30000

24 000

27 000

24000

Malerials

Labour

Production expenses

Seling expenses...

5.00

6.00

1.20

0.60

Overhead lixed expenses are 240 000 per year including depreciation of 36 000

Monthly production will be scheduled so that finished goods stocks at the end of any month are sufficient to meet one half of the sales quantities forecast for the next following month. Thus the closing stock of finished goods at 30 June 1994 w/ll be 10000 units: no work-in-progress will arise. Raw materials will be purchased so that closing stocks of materials at the end of any month are sufficient to meet production requirements in the next following month.

All material purchases are obtained on one month's credit terms and all other expenses including labour are paid as Incurred. The fixed expenses each month are equivalent to 1/12 of the total for the year.

All sales are made on credit terms; cash from hall a month's sales is received in the nex: following month and the remainder are received one month after that Quislanding debtors a

30 June 1994 are 787500, of which 525 000 will be received in July with the balance being received in August.

REQUIRED

1. A production budget in units tor the six months ended 31 December 1994. Units sales it January and February 1995 are budgeted lo be 23 000 units per month.
2. A Cash Budget, prepared on a monthly basis, for the gix months ended 31 December 1994 The budgeted bank balance at 30 June 1994 is expected to be 71 000 overdrawn.

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(c) The figures for Stocks to be shown in the Company's Balance sheet at 31 December 1994

wil be mate at s considering its budgeis for the six months ending 31 Decamber 1994 . All sales Overhead lixed expenses are 240000 per year inctuding depreciation of 36000. Monthly production will be scheduled so that linisined goods stocks at the end of any month are sutficient to meet one haif of the sales quantities torecast tor the next following month. Thus the closing stock of finished goods at 30 June 1994 vill be 10000 units; no work-in-progress wilf arise. Raw materials will be purchased so that olosing stocks of materials at the end of any month are sufficient to meel production requirements in the next following month. All material purchases are oblained on one month's credit terms and all other expenses including labour are paid as incurred. The lixed expenses each month are equivalent to 1/12 of the totalf fo: the year. All sales are made on credit terms; cash Irom hall a month's 6ales is rocelved in the nex! following month and the remalnder are received one month after thatr Oulslanding debtors a 30 June 1994 are 787500, of which 525000 wit be received in July with the balance beine received in, August. AEQUIRED (a) A production budget in units tor the six months ended 31 December 1994. Units sales in January and February 1995 are budgeted to be 23000 units per monith. (b) A Cash Budget, propared on a monthly bnsis, tor the aix months anded 31. December 1994 The budgated benk balance at 30 June 1994 is expected to be 71000 overdrawi. wil be mate at s considering its budgeis for the six months ending 31 Decamber 1994 . All sales Overhead lixed expenses are 240000 per year inctuding depreciation of 36000. Monthly production will be scheduled so that linisined goods stocks at the end of any month are sutficient to meet one haif of the sales quantities torecast tor the next following month. Thus the closing stock of finished goods at 30 June 1994 vill be 10000 units; no work-in-progress wilf arise. Raw materials will be purchased so that olosing stocks of materials at the end of any month are sufficient to meel production requirements in the next following month. All material purchases are oblained on one month's credit terms and all other expenses including labour are paid as incurred. The lixed expenses each month are equivalent to 1/12 of the totalf fo: the year. All sales are made on credit terms; cash Irom hall a month's 6ales is rocelved in the nex! following month and the remalnder are received one month after thatr Oulslanding debtors a 30 June 1994 are 787500, of which 525000 wit be received in July with the balance beine received in, August. AEQUIRED (a) A production budget in units tor the six months ended 31 December 1994. Units sales in January and February 1995 are budgeted to be 23000 units per monith. (b) A Cash Budget, propared on a monthly bnsis, tor the aix months anded 31. December 1994 The budgated benk balance at 30 June 1994 is expected to be 71000 overdrawi