Cash Budgeting, Cost Accounting

Assignment Help:
Stopover industries ltd, a recently incorporated company plans to go into production next year. the following standard cost matrix has been assembled for one of the products it proposes to manufacture.

Cost per unit

direct materials 18.00
direct labor 10.00
variable factory overhead 8.00
salaries 6.00
rent 5.00
depreciation 3.00
total standard cost 50.00

the following information is available:
1. the company anticipates to manufacture 198,000 units in the 2000 fiscal year.

2. sales in the second and fourth quarters of the year are expected to be twice those of the first and third quarters.

3. Direct materials are ordered and for, a month in advance.

4. 20% of the company sales are in cash. 60% of the credit sales are collected in the month following the month of sales and the balance the following month.

5. Expenses are settled in arrears at the month end.

6. overdraft facilities have been agreed at 30% per quarter and the company''s bank balance at 31 December 19x9 is expected to be 50,000.

7. The product is expected to retail at 80 per unit.

REQUIRED
1. Budgeted profit and loss for the first quarter.

2.Sales collection and schedule for the months of January, February & March 2000.

3.Cash flow for the months of Jan, Feb and Mar 1999

Related Discussions:- Cash Budgeting

Standard cost card, Standard Cost Card It is a card record of the Stan...

Standard Cost Card It is a card record of the Standard or expected costs in producing a specified output.  This gives the physical quantities of inputs and also their monetary

Calculate capacity ratio and efficiency ratio, Woodall Ltd has two producti...

Woodall Ltd has two production departments, X and Y. For month 2, the company budgets its overhead costs as:   X Y Variable overhead

Application of a hand-held clinical thermometer, In an application of a han...

In an application of a hand-held clinical thermometer for the National Health Service it is required to use disposable temperature sensors and digital read out of temperature betwe

Shrinkage - production process, Shrinkage - Production Process This re...

Shrinkage - Production Process This refers to a disappearance or loss of material inputs utilized throughout the production process. It happens mainly via the evaporation. Thi

Fund flow statement, An analysis of the fluctuations of current assets and ...

An analysis of the fluctuations of current assets and current liabilities that is working capital describes that how the working capital has decreased or increased. We want to iden

Calculate the moderate earnings per share, A listed entity, had 3,000,000 $...

A listed entity, had 3,000,000 $1 ordinary shares in issue, On 1 January 2009 CSA.CSA made a bonus issue of 1 for 3, On 1 May 2009. CSA issued 2,000,000 $1 ordinary shares for $3.2

Calculate break-even level of sales volume and revenue, Q. Calculate break-...

Q. Calculate break-even level of sales volume and revenue? Z-Boxes sell for £299 and their variable production cost is £99. Research and development, and fixed production overh

What kinds of benefits have communities realized due to fca, Q. What kinds ...

Q. What kinds of benefits have communities realized due to FCA? Communities have understood the following benefits by using FCA: • Rates or tipping fees are set right and fa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd