Suppose that you have decided that you want to manufacture 15% for future quarters stock in the
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- Suppose that you have decided that you want to manufacture 15% for future quarter’s stock in the preceding quarter and have it on the shelves in advance. Draw up a Production budget using the following information for 2019: (5)
- Opening stock (15%)
- Closing stock (15%)
- Direct material costs are R12.25 per unit
- Direct material purchases are paid 50% cash in the quarter of purchase and 50% in the following quarter (30days).
- Creditors or accounts payable will be paid at the beginning of the year and will be paid on full in the first quarter.
- It takes one hour of labour per unit at an average wage of R18 per hour to make the mobile cover. Draw up a labour budget for 2019. (5)
- MAN206 (Pty) Ltd has collected the following information to do their cash flow budget for 2019: (10)
- The enterprise’s bank account shows a negative at the beginning of the year.
- An investment of R R15000.00 will be sold off in the third period of the year.
- Purchases of all current costs are spread evenly over the quarters.
- Direct labour costs are settled in the period in which they are incurred.
- Management wants to purchase a new vehicle for R235 000 in the third period.
- The enterprise pays the tax monthly in equal instalments.
- Loans are paid in the second period of R7500.
- A loan of R550 000 will be granted in the first period of the year.
- There’s share capital of R497 195 (opening)
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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