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

Requirementsdo not use any direct quotes andor cut and

Requirements: Do not use any direct quotes and/or cut and pasted information (i.e. your discussion is to be 100% your thoughts, ideals and insights). A minimum 350 words are required (this is the minimum and totally feel ...

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 ...

Cost behaviordetermining cost behavior please respond to

Cost Behavior Determining Cost Behavior: Please respond to one of the following: Option 1 Choose a company that interests you. It could be your current employer, a past employer, or even a future employer. Compare and co ...

Discuss cost management as a professionname three

Discuss cost management as a profession Name three professional cost management organizations and explain their roles. Where in the corporate, not for profit, areas would cost accountants work and what types of work woul ...

Assignment discussion-cost accumulation systemwhen

Assignment: Discussion-Cost Accumulation System When companies accumulate costs, they generally use either a job-order or a process costing system. The type of system used often varies based on the type of product or ser ...

Accounting assignmentmotorcade company has three service

Accounting Assignment Motorcade Company has three service departments (S1, S2, and S3) and two production departments (P1 and P2). The following data relate to Motorcade's allocation of service department costs:   Budget ...

Cost accountingquestion 1 which of the following statements

Cost Accounting Question 1. Which of the following statements regarding differential costs is (are) false? (A). The full cost fallacy occurs when a decision-maker fails to include fixed manufacturingoverhead in the produ ...

Assignmentwhile a form of abc was being used by general

Assignment While a form of ABC was being used by General Electric back in the sixties, widespread use of ABC didn't began in the United States until the late eighties. The early focus of ABC was on developing more reliab ...

Cost accounting- little debbie brownieshere is a copy of

Cost Accounting- Little Debbie Brownies Here is a copy of the assignment. My snack of choice is the Little Debbie Fudge Brownies Comprehensive Product Costing Select your favorite drink or snack item manufactured by a pu ...

Instructionsnbspbull all questions carry equal marksbull

Instructions:   • All Questions carry equal marks. • All Questions are compulsory • All answers to be explained in not more than 1000 words for question 1 and 2 and for question 3in not more than 500 words for each subse ...

  • 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