Question: QUESTION 4 ( 2 0 Marks ) REQUIRED Use the information provided below to prepare the Cash Budget for August, September and October 2 0
QUESTION Marks REQUIRED Use the information provided below to prepare the Cash Budget for August, September and October INFORMATION The following information relates to Joanus Manufacturers which will commence business on August with a capital contribution of R cash, manufacturing a product called Jetta: Machinery and equipment will be purchased on credit on August for R A deposit of will be paid upon purchase and the balance will be paid in five equal monthly instalments commencing September Production units for each month are expected to exceed the following months estimated sales units by Production will commence on August Estimated sales at R per unit are as follows: Units August September October November Cash sales are forecasted at of the total sales. The balance of the sales will be on credit and the customers are expected to pay in the month after the sale. Separate entries are required for cash sales and collections from credit sales. Variable manufacturing costs per unit are as follows: Direct materials R Direct labour R Variable overheads R Direct materials will be purchased for cash for the production requirements of each month. Direct workers will have their salaries paid on the last working day of each month. Fixed overheads amount to R per month and this includes depreciation of R per month. Fixed and variable overheads are paid in the month after they are incurred. Separate entries are required for fixed and variable overheads
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