1. The following quotation is received from a supplier in respect of Material X : Rate per kg. Lot price-1,000 kgs. 5,000 kgs. 10,000 kgs. 5.00 4.50 4.00 Trade discount 20% and cash discount 5% if payment is made within 15 days. One container is required for every 1,000 kgs. of the material and containers are charged at $ 100 each but credited $ 90 if returned within 3 months. Transport charges for one order Storage charges Calculate the material cost for 5,000 kgs. and per kg. of the material when the purchaser decides to purchase 5,000 kgs. of the material, assuming containers are returned in due course. 500 150
1. The following quotation is received from a supplier in respect of Material X : Rate per kg. Lot price-1,000 kgs. 5,000 kgs. 10,000 kgs. 5.00 4.50 4.00 Trade discount 20% and cash discount 5% if payment is made within 15 days. One container is required for every 1,000 kgs. of the material and containers are charged at $ 100 each but credited $ 90 if returned within 3 months. Transport charges for one order Storage charges Calculate the material cost for 5,000 kgs. and per kg. of the material when the purchaser decides to purchase 5,000 kgs. of the material, assuming containers are returned in due course. 500 150
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:1. The following quotation is received from a supplier in respect of Material X :
Rate per kg.
Lot price-1,000 kgs.
5,000 kgs.
10,000 kgs.
5.00
4.50
4.00
Trade discount 20% and cash discount 5% if payment is made within 15 days. One container is
required for every 1,000 kgs. of the material and containers are charged at
$ 90 if returned within 3 months.
$ 100 each but credited
$
Transport charges for one order
Storage charges
Calculate the material cost for 5,000 kgs. and per kg. of the material when the purchaser decides to
purchase 5,000 kgs. of the material, assuming containers are returned in due course.
500
150
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