Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem 1: Given below are details of some of the budgets of Calissse Limited for the eight months ending 28 February 2012:

Notes:

A) Units are purchased at standard cost of Rs 60 each. Purchases are planned and hence at the end of each month the stock is adequate to meet the forecast sales target for the given two months.

B) All sales are made at a price of Rs 100 per unit. One half of sales are made for instant cash settlement. The remainder of sales is on credit. Receipts from credit sales are as shown: 75 % in the month following sale and 25 % in the month after that.

C) All purchases of units are made on one month’s credit.

D) Wages and overheads are paid as incurred. From 01 October 2011 a wages increase of 10 % has been agreed. This pay rise was agreed only after the budget was prepared and is not comprised in the figure given above.

E) The company is repaying a bank loan at the rate Rs 30,000 per month Interest on the loan is paid in September and December 2011 that is expected to be Rs 45,000 and Rs 40,000 correspondingly. Interest on the bank overdraft due in December 2011 is estimated to be Rs 3,000.

F) In September 2011 Rs 40,000 will be paid as a 10 % deposit on a new machine. In December 2011 whenever the machine is to be installed the balance due will be paid.

G) Tax of Rs 150,000 has to be paid by the company on 1 December 2011.

H) This is estimated that the stock at 1 July 2011 will be 17,500 units and at 1 September 2011 the cash at the bank will be Rs 24,000.

Required:

a) A cash budget for the four months of September, October, November and December 2011.

b) In brief describe the significance of preparing a cash budget.

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M96741

Have any Question? 


Related Questions in Cost Accounting

For your assignment you will apply the fundamental concepts

For your Assignment, you will apply the fundamental concepts of accounting and finance that you are studying to complete several problems indicative to real-world business scenarios and challenges. For this Assignment, t ...

Accounting1 lisa inc estimates that its employees will

Accounting 1. Lisa Inc. estimates that its employees will utilize 200,000 direct labor hours during the coming year. Total overhead costs are estimated to be $6,700,000 and machine hours are estimated to be 100,000. Actu ...

Case questions rio grande medical center cost allocation

CASE QUESTIONS RIO GRANDE MEDICAL CENTER Cost Allocation Concepts 1. Is it "fair" for the Dialysis Center to suffer in profitability, and hence for the department head to possibly lose his bonus, just because the Outpati ...

Assignment cost accountingoverviewthe final project for

Assignment: Cost Accounting Overview The final project for this course is the creation of a quantitative analysis with a memo to management. Classifying a company's costs allows for an in-depth analysis of the impact tha ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

Question 1pringle company distributes a single product the

Question 1. Pringle Company distributes a single product. The company's sales and expenses for a recent month follow:   Total    Per Unit   Sales $ 300,000   $ 20        Variable expenses   210,000     14          Contri ...

Assignment- show the step by step solutions to the

Assignment- Show the step by step solutions to the following questions: I. A firm is able to sell 10,000 units at $ 12 per piece. The company fixed cost is $30,000. Variable cost is $6 per unit. 1. What is the contributi ...

Assignmentdolan products is a small family owned audio

Assignment Dolan Products is a small, family owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers ...

Accounting assignment1 punch products inc is considering

Accounting Assignment 1. Punch Products, Inc. is considering purchasing a new production machine and has assembled the following information from two vendors of the machine that it is considering buying:   A Products B P ...

Quiz1 a process cost system would be used for all of the

QUIZ 1 A process cost system would be used for all of the following products except computer chips. chemicals. motion pictures. soft drinks. 2 Differences between a job order cost system and a process cost system include ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen