QUESTION THREE

$[30]$

INFORMATION

$1.$ The following data and estimates are available for a project of Fego Limited for September to December $2021$:

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|$c$|$c$|$c$|\}$

$\backslash$hline & September & October & November & December $\backslash \backslash$

$\backslash$hline & R & R & R & R $\backslash \backslash$

$\backslash$hline Sales & $130000$ & $110000$ & $120000$ & $140000\backslash \backslash$

$\backslash$hline Wages & $40000$ & $34000$ & $38000$ & $39000\backslash \backslash$

$\backslash$hline Fixed overheads & $16000$ & $16000$ & $16000$ & $16000\backslash \backslash$

$\backslash$hline Variable overheads & $16000$ & $13000$ & $15000$ & $17000\backslash \backslash$

$\backslash$hline Materials purchases & $17000$ & $14000$ & $16000$ & $18000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

$2.$ Sixty percent $\backslash ((60\backslash \%)\backslash )$ of the sales are expected to be for cash and the balance on credit. Credit customers usually pay in the month after the sale.

$3.$ Labour costs are paid for in the month in which they are incurred.

$4.$ Fixed overheads include R$5000$ each month for depreciation and payment is made monthly.

$5.$ Variable overheads are paid for in the month after they are incurred.

$6.$ Direct materials are purchased by cheque each month. $7.$ The cash balance on $01$ October $2021$ is expected to be R$30000.$

$8.$ Ten percent $(\backslash (10\backslash \%\backslash ))$ of the sales for December $2021$ will be invested in an interest$-$bearing account for a period of six months. Interest will be received upon maturity.

Prepare the cash budget for November and December.