Poiju Limited expects the following cash collections and payments for the first three months of 2021:

	January	February	March
Cash collections ($)	413,000	338,000	335,000
Cash disbursements ($)	378,000	486,000	320,000

The expected cash balance at the end of January 2021 is $225,000. Calculate the expected cash balance at the beginning of March.

Q2 The following information applies to questions 46 to 49

The following information (in units of finished goods) was obtained from Kiuy Limited's production budget:

	July	August	September
Closing inventory	840	900	1,100
Production	1,800	2,100	3,200

Each unit requires 25 metres of fabric, which costs $37 per metre.

Raw materials inventory at the end of each month should be 76% of the following month's production requirements. 30% of the cost of raw materials purchases is paid in the month of purchase and the remainder is paid in the following month.At the beginning of July, the raw materials inventory is expected to be 7,000 metres.e a raw materials budget and use it to answer questions 46 to 49.

Question 46(1 mark):

Calculate the quantity of fabric, in metres, required for production inJuly.

Answer:

Question 47 (1 mark):

Calculate the quantity of fabric, in metres, required for production inAugust.

Question 48 (2 marks):

Calculate the closing raw materials inventory, in metres, forJuly.

Question 49 (2 marks):

Calculate the required purchases of raw materials inventory, in metres, forJuly.

Answer rating: 100% (QA)

ANSWER For Question 46 Quantity of fabric required for production in July Production in July Fabric ... View the full answer