Reference no: EM132738316
Question: ABC Pty Ltd produces turbines used in the production of hydro-electric generating equipment. The turbines are sold to various engineering companies that produce hydro- powered generators in Australia. Details of the operations for the coming four months are provided in the attached excel spread sheet.
Other information:
- The company plans to purchase land for future expansion
- Sales are on credit. Amounts not received in the month following the sale are written off as bad debt immediately.
- The payment for labour and purchases of materials and other costs are for cash and paid for in the month of acquisition.
- If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage (including any interest payments due ). Any cash borrowed is repaid one month later, as is the interest due.
During the process of preparing the organisation's budget, the Sales Manager is discussing the possible outcome of the forthcoming election with the Production Manager. She noted that if one of the major political parties wins the election and forms the government, there is a strong possibility that alternative sources of energy such as hydro-powered electricity may no longer be as actively supported by the new government as is the case under the current government.
The sales manager's primary concern is that market for alternative power generation is already volatile and subject to significant uncertainty. The production manager is also concerned about his plans to build the new automated manufacturing facility on the land to be purchased in May. This new manufacturing facility will enable him to manufacture, in-house, the major two parts he is now purchasing and to significantly automate the assembly process that is currently somewhat labour intensive. His projection for the new facility indicates a reduction in direct material & direct labour costs of 33% but that his fixed manufacturing overheads are likely to increase by 65% due to the increased investment in production capacity.
Required: 1) Monthly Sales Budget for the quarter ending June
2) Monthly Production Budget for the quarter ending June
3) Monthly Direct Materials Budget for the quarter ending June
4) Monthly Direct Labour Budget for the quarter ending June
5) Monthly Manufacturing Overhead Budget for the quarter ending June
6) Monthly Selling & Administrative Expenses Budget for the quarter ending June
7) Ending Inventory Budget for the month of June
8) Cost of goods Sold Budget for the quarter
9) Budgeted Income Statement for the quarter
10) Monthly Cash budget for the quarter.
|
How much purchase returns & allowances were recorded
: Angeles Co. purchased goods amounting to P1,717,000 on February 1, 2020. Terms were 2/10, n/30. Angeles paid the whole amount on February 7, 2020.
|
|
Define why you think it is the best suited for the business
: Propose the inventory valuation method you would advise the company to use. Explain why you think it is the best suited for the business.
|
|
What is the effect of safedata revenues
: What is the effect of SafeData's revenues and expenses on consolidated totals? Why? Revenues and expenses of the subsidiary from the period prior.
|
|
Determine the maximum price that they can afford to pay
: A new Wave soldering machine is expected to save Fast Circuit Boards 11,000 per year through a reduction of labour costs and increased quality.
|
|
Calculate cost of goods sold budget for the quarter
: ABC Pty Ltd produces turbines used in the production of hydro-electric generating equipment. The turbines are sold to various engineering companies.
|
|
What should be the diluted earnings per share
: Assuming the income tax rate was 32%, what should be the diluted earnings per share for the year ended December 31, 2020 of Professor Company?
|
|
What is the apr on the loan
: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30- year mortgage loan for 80 percent of the $2,900,000 purchase price.
|
|
What should the present value of lease payments be equal to
: ABC Leasing Company purchased specialized equipment from Hernandez Company on March 1, 2020 for $1,200,000. On the same date, it leased this equipment to.
|
|
What is the maintenance cost per unit produced
: Alisha Incorporated manufactures medical stents for use in heart bypass surgery. Based on past experience, Alisha has found that its total maintenance costs.
|