Quarterly production budget, Financial Accounting

In response to a question about financing the acquisition, James replied "The production equipment will cost $950,000.  We will also need to purchase $50,000 of additional equipment to complete installation.   We will finance this purchase with a five year $1,000,000 loan from the Regional Bank.  The interest rate will be 10% per annum payable quarterly.  The repayment schedule negotiated is for quarterly repayments over the duration of the loan.  The interest payment and the loan repayment will occur on the last day of each quarter.

RSC Designs Pty, Ltd. is a manufacturer of metal and glass sculptures.  The firm's two product lines are designated as SML (small sculptures: 13 x 17 cm) and LGE (large sculptures: 26 x 34 cm).  The primary raw materials are metal strips and 30 cm by 40 cm glass sheets.  Each SML sculpture requires a 60 cm metal strip; and each LGE sculpture requires a 1.2m metal strip.  Allowing for normal breakage and scrap glass, the company can get either four SML sculptures or one LGE sculpture from one glass sheet.  Other raw materials, such as solder, rivets, glitter and glue are insignificant in cost and are treated as indirect materials.

Posted Date: 3/15/2013 1:55:36 AM | Location : United States







Related Discussions:- Quarterly production budget, Assignment Help, Ask Question on Quarterly production budget, Get Answer, Expert's Help, Quarterly production budget Discussions

Write discussion on Quarterly production budget
Your posts are moderated
Related Questions
1. Select a publicly traded company (preferably manufacturing oriented; do not use a financial services company such as a bank or a bank holding company) and obtain a copy of their

Foreign Corporation - A corporation that isn't organized under the laws of ones territories or states. Taxing of foreign corporations relies on whether corporation has Nexus or eff

EXPRESS TRUSTS Creation : An express trust is "created not by facts and circumstances, but by the express words of the settlor". (Fitzgerald v Stewart) Completely an

Dividends out of the capital profits Dividends out of the capital profits are apportioned on the same basis as dividends out of income (Re. Doughty). (a) Variation of sec

scope of financial accounting

Q. What do you mean by Issuer? Issuer - This term means an issuer, securities of which are registered under Section 12 of Securities Exchange Act of 1934, or that is essential

Evaluating the investment using return on capital employed: Annual depreciation charge = 1500000/5 = $300000 Average investment = 1500000/2 = $750000 Average annual

Financial Statement Analysis Group Project 2 ACCT3303 Spring 2013 Due Date: May 5 (by the end of the day) The specific purposes of this project are: 1. Apply to actual companies th

THE STATEMENT OF CHANGES IN EQUITY This is a very important report because it explains the movements in the shareholder funds during the year and also acts as a link between the