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

Variance analysis and standard costing, Variance Analysis and Standard Cost...

Variance Analysis and Standard Costing Standard costing is defined with CIMA like a technique that uses standards for revenues and costs for the purpose of control via varianc

Cost profit volume analysis, COST PROFIT VOLUME ANALYSIS Cost profit vo...

COST PROFIT VOLUME ANALYSIS Cost profit volume (CVP) analysis is an essential tool for profit planning. It can be explained  as - ' a managerial tool showing the relationship a

Budget, budget preparation

budget preparation

Determine the expected rate of growth of dividends, General Motors has to r...

General Motors has to raise new capital in one of the following three ways. Using the income tax rate of 32%, find the after-tax cost of new capital in each case. (A) Sell commo

Differential costing, What do you mean by differential costing ? How it dif...

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?

Gross rental revenue, Operating Income 1. Operating Income is derived f...

Operating Income 1. Operating Income is derived from two sources, Rental Income from businesses operating in the warehouse complex and Interest Income of the project operating

Direct labour rate variance, Direct Labour Rate Variance It is the dif...

Direct Labour Rate Variance It is the difference among the actual direct labour rate and the standard direct labour rate for the total hours worked. Utilizing an equation,

Mr, Extracts from P Co''s records for last month are as follows: ...

Extracts from P Co''s records for last month are as follows: BUDGET ACTUAL PRODUCTION 7,000 UNITS 7,200 UNITS Direct Material $42,000 $42,912 Calculate

Specific order costing, Specific Order Costing This is a broad costing...

Specific Order Costing This is a broad costing system that is applicable where work jobs consist of separate jobs, batches or contracts.  Every job or contract or batch is a c

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