QUESTION 3 REQUIRED (20 MARKS) Use the information provided below to prepare the following for Mustang...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6648545e85625_2226648545e0e66e.jpg)
Transcribed Image Text:
QUESTION 3 REQUIRED (20 MARKS) Use the information provided below to prepare the following for Mustang Enterprises for January and February 2024. 3.1 Debtors Collection Schedule 3.2 Cash Budget. INFORMATION The following information was supplied by Mustang Enterprises: (4 marks) (16 marks) 1. Mustang Enterprises expects to have an unfavourable bank balance of R40 000 on 31 December 2023. 2. The monthly sales were projected as follows: 2023 November December 2024 Units 44 000 53 000 Units 3. 4. 5. 6. January February 47 000 31 000 The selling price is R20 per unit (excluding any discounts). All the goods produced each month are expected to be sold in the same month. Sixty percent (60%) of the sales is expected to be on credit and the balance is for cash. Thirty percent (30%) of the cash sales is subject to a discount of 10%. Credit sales are usually collected as follows: 20% in the month of sale, and these debtors receive a 5% discount. 75% in the month after the sale, and the rest is usually written off as bad debts. Manufacturing overheads are paid monthly. The overheads are expected to amount to R65 000 for December 2023, including R5 000 for depreciation. Manufacturing overheads are expected to increase by 5% each month. Labour costs amount to R6 per unit and are paid in the month in which they are incurred. Labour costs per unit are expected to increase by 9% with effect from 01 February 2024. 7. Materials cost R7 per unit (excluding any discounts). All the materials are purchased for cash to take advantage of a discount of 7.5%. 8. R200 000 is expected to be invested in a fixed deposit account on 01 February 2024. Interest at 9% per annum is receivable monthly, commencing February 2024. 9. Selling and administrative costs are paid monthly and are expected to total R56 000 for February 2024, after an increase of 12% takes place on 01 February 2024. QUESTION 3 REQUIRED (20 MARKS) Use the information provided below to prepare the following for Mustang Enterprises for January and February 2024. 3.1 Debtors Collection Schedule 3.2 Cash Budget. INFORMATION The following information was supplied by Mustang Enterprises: (4 marks) (16 marks) 1. Mustang Enterprises expects to have an unfavourable bank balance of R40 000 on 31 December 2023. 2. The monthly sales were projected as follows: 2023 November December 2024 Units 44 000 53 000 Units 3. 4. 5. 6. January February 47 000 31 000 The selling price is R20 per unit (excluding any discounts). All the goods produced each month are expected to be sold in the same month. Sixty percent (60%) of the sales is expected to be on credit and the balance is for cash. Thirty percent (30%) of the cash sales is subject to a discount of 10%. Credit sales are usually collected as follows: 20% in the month of sale, and these debtors receive a 5% discount. 75% in the month after the sale, and the rest is usually written off as bad debts. Manufacturing overheads are paid monthly. The overheads are expected to amount to R65 000 for December 2023, including R5 000 for depreciation. Manufacturing overheads are expected to increase by 5% each month. Labour costs amount to R6 per unit and are paid in the month in which they are incurred. Labour costs per unit are expected to increase by 9% with effect from 01 February 2024. 7. Materials cost R7 per unit (excluding any discounts). All the materials are purchased for cash to take advantage of a discount of 7.5%. 8. R200 000 is expected to be invested in a fixed deposit account on 01 February 2024. Interest at 9% per annum is receivable monthly, commencing February 2024. 9. Selling and administrative costs are paid monthly and are expected to total R56 000 for February 2024, after an increase of 12% takes place on 01 February 2024.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Find the absolute maximum and absolute minimum values of f on the given interval. f(x) = x 3 6x 2 + 5, [3, 5]
-
Outdoor Denim Co. has an annual plant capacity of 60,000 units, and current production is 45,000 units. Monthly fixed costs are $40,000, and variable costs are $21 per unit. The present selling price...
-
Discuss any benefits you can think of for a company to (a) Cross-list its equity shares on more than one national exchange, and (b) To source new equity capital from foreign investors as well as...
-
Nikron Corporation issued 20,000 shares of \(\$ 0.50\) par value common stock during the year for \(\$ 20\) each. Nikron also repurchased treasury stock for \(\$ 15,000\). Net income for the year was...
-
(5%) Sunrise Inc. is considering a capital investment proposal that costs $227,500 and has an estimated life of four years and no residual value. The estimated net cash flows are as follows: YearNet...
-
3:34 10.5 Unanswered 3 attempts left Theresa Morgan of Boone, IA, age 55, recently suffered a stroke. Her total bill for this care was $125,500. After leaving the hospital, she spent 25 days in a...
-
The single-phase ac voltage controller has a 120-V rms 60-Hz source and a load resistance of 20 . The delay angle is 45. Determine (a) The rms load voltage, (b) The power absorbed by the load, (c)...
-
A basketball star covers 2.50 m horizontally in a jump to dunk the ball. His motion through space can be modeled precisely as that of a particle at his center of mass. His center of mass is at...
-
Post Test Test I-A Instruction: Determine the following and present using the illustrated format. 1. Net Income after tax 2. Balance Sheet Income Statement Data: Revenue - 2,588,000 Cost goods sold =...
-
Concorde Industries provided the following information about its standard costing system for 2019: Standard Data Actual Data Labor 2 hrs. @ Php21 per hr. Produced 8,000 units Budgeted fixed overhead...
-
Analyze the accounting challenges associated with cryptocurrency transactions in corporate financial statements. * NO AI ANSWERS * AI SOLUTIONS WILL BE REPORTED *
-
1. A dime is accidentally dropped from the top of the Empire State Building in Manhattan, New York. The height, h, in meters of the dime above the ground at t seconds can be modelled by 2 h(t)=- 4.9...
-
You are planning to make 18 monthly withdrawals beginning at the end of the sixth month. You plan to withdraw $135 in the sixth month and increase your withdrawals by $10 over the previous month's...
-
You deposit $10,000 in a savings account that earns 7.5% simple interest per year. What is the minimum number of years you must wait to double your balance? Suppose instead that you deposit the...
-
Draw a project balance chart for Problem 18. Data From Problem 18: 18. Your company is looking at purchasing a loader at a cost of $125,000. The loader would have a useful life of
-
Monroe Company processes a food seasoning powder through its Compounding and Packaging departments. In the Compounding Department, direct materials are added at the beginning of the process, and...
-
Riley Manufacturing Corporation produces a cosmetic product in three consecutive processes. The costs of Department 1 for May 2019 were as follows: Department 1 handled the following units during...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App