Collected these information from Bell Telecom Company (Egypt) producing 3 products"E" ,"F", and "G" for the year 2022:First: Sales:- Estimated sales "E" 11,000,000 EGP "F" 8,400,000 EGP "G" 7,380,000 EGP- Sales price/unit 440 EGP 420 EGP 410 EGPSecond: Production and Inventory (finished goods):- Total estimated sales units for product (E) will allocate for first quarter, second quarter,third quarter, and fourth quarter by equally.- For calculating of ending inventory of Finished Goods (F.G.) of product (E), 1/4 of salesunits of the next quarter are used except the fourth quarter 4/4 of sales units of the samequarter.- Ending inventory of Finished Goods (F.G.) for first quarter = 1250 units for product (E).- Beginning inventory of Finished Goods (F.G.) for first quarter = 2300 units for product (E).- Ending inventory of Finished Goods (F.G.) for product (F) and (G) 1/4 of sales units.- Inventory 31/12/2021 for product (F) and (G) are 1600 and 1100 units, respectivelyThird: Raw materials and Purchases:- Quantity needed from material "M": "E" 17 kg. "F" 13 kg."G" 11 kg.- Quantity needed from material "N": "E" 16 kg. "F" 20 kg."G" 18 kg.- The direct hours needed to produce one unit is 18 hours for "E", and 20 hours for "F",and 22 hours for "G".- Rate per hour is 5 EGP for three products.- The price of material is 8 EGP for "M" and 11 EGP for "N".Fourth: Inventory raw materials:- Beginning period inventory "M" 600 kg. "N" 800 kg.- Ending period inventory 1600 kg. 900 kg.Fifth: Indirect overhead cost: (The numbers are in thousands of pounds)-Heat and water 50,000 EGP involve (60% V).-Machine maintenance 120,000, if you know rate of maintenance = EGP 0.08(Number oflabors hours).- Wages of service workers 8000 EGP (40%F).- Factory oil & gas 5000 EGP (90%V). - Power 40,000 EGP.- Depreciation 15500 EGP. - Insurance on plants 10700 EGP.-Supervision Cost 13000 EGP.Sixth: Cost of marketing and administration:- Advertising 15000 EGP.- Stationary 9000 EGP.- Shipping material 14000 EGP- Professional fees 6000 EGP.- Trade Show 21000 EGP.- Executive compensation 27000 EGP.Seventh:Items Quarter 1 Quarter 2 Quarter 3 Quarter 4Gross sales 500,000 600,000 400,000 300,000Gross purchases 250,000 150,000 200,000 180,000Paid cash equipment ----- ----- 180,000 -----Paid cash utilities ----- 500,000 ----- -----Salary and wages 21000 26000 24000 -----Interest credit 10,000 5000 10,000 35000Interest debit 8000 6000 19000 4000Overhead expenses 4000 3000 3500 3200Minimum reserve of cash 300,000 300,000 300,000 300,000If you know that:-The company can borrow money when required with the loan’s interest rate of 10% of theamount borrowed during the period.- There are 20% of gross sales are considered as cash sales.- Credit sales are collected as follows: 70% in the same quarter of sales, 20% in the followingquarter, and 10% in the quarter after.- Overhead expenses include 3000 EGP depreciation/ quarter.- There are 10% of gross purchases are considered as cash purchases.- Debit purchases are paid as follows: 60% in the same quarter of purchases, 25% in thefollowing quarter, and 15% in the quarter afterEighth:Balance Sheet (B.S.) of the 31/12/2021Assets Liabilities & Owner's EquityCash 200,000 LoanAccounts payable100,00050,000A/R 20,000 Capital 195000Truck 29000Equipment 36000Depreciation (3000)Materials 3000Merchandise 60,000Total Assets 345000 Total Liabilities and O'E 345000Required: Prepare suitable budgets.
Collected these information from Bell Telecom Company (Egypt) producing 3 products
"E" ,"F", and "G" for the year 2022:
First: Sales:
- Estimated sales "E" 11,000,000 EGP "F" 8,400,000 EGP "G" 7,380,000 EGP
- Sales price/unit 440 EGP 420 EGP 410 EGP
Second: Production and Inventory (finished goods):
- Total estimated sales units for product (E) will allocate for first quarter, second quarter,
third quarter, and fourth quarter by equally.
- For calculating of ending inventory of Finished Goods (F.G.) of product (E), 1/4 of sales
units of the next quarter are used except the fourth quarter 4/4 of sales units of the same
quarter.
- Ending inventory of Finished Goods (F.G.) for first quarter = 1250 units for product (E).
- Beginning inventory of Finished Goods (F.G.) for first quarter = 2300 units for product (E).
- Ending inventory of Finished Goods (F.G.) for product (F) and (G) 1/4 of sales units.
- Inventory 31/12/2021 for product (F) and (G) are 1600 and 1100 units, respectivelyThird: Raw materials and Purchases:
- Quantity needed from material "M": "E" 17 kg.
"F" 13 kg.
"G" 11 kg.
- Quantity needed from material "N": "E" 16 kg.
"F" 20 kg.
"G" 18 kg.
- The direct hours needed to produce one unit is 18 hours for "E", and 20 hours for "F",
and 22 hours for "G".
- Rate per hour is 5 EGP for three products.
- The price of material is 8 EGP for "M" and 11 EGP for "N".
Fourth: Inventory raw materials:
- Beginning period inventory "M" 600 kg. "N" 800 kg.
- Ending period inventory 1600 kg. 900 kg.
Fifth: Indirect overhead cost: (The numbers are in thousands of pounds)
-Heat and water 50,000 EGP involve (60% V).
-Machine maintenance 120,000, if you know rate of maintenance = EGP 0.08(Number of
labors hours).
- Wages of service workers 8000 EGP (40%F).
- Factory oil & gas 5000 EGP (90%V). - Power 40,000 EGP.
-
-Supervision Cost 13000 EGP.
Sixth: Cost of marketing and administration:
- Advertising 15000 EGP.
- Stationary 9000 EGP.
- Shipping material 14000 EGP- Professional fees 6000 EGP.
- Trade Show 21000 EGP.
- Executive compensation 27000 EGP.
Seventh:
Items Quarter 1 Quarter 2 Quarter 3 Quarter 4
Gross sales 500,000 600,000 400,000 300,000
Gross purchases 250,000 150,000 200,000 180,000
Paid cash equipment ----- ----- 180,000 -----
Paid cash utilities ----- 500,000 ----- -----
Salary and wages 21000 26000 24000 -----
Interest credit 10,000 5000 10,000 35000
Interest debit 8000 6000 19000 4000
Overhead expenses 4000 3000 3500 3200
Minimum reserve of cash 300,000 300,000 300,000 300,000
If you know that:
-The company can borrow money when required with the loan’s interest rate of 10% of the
amount borrowed during the period.
- There are 20% of gross sales are considered as cash sales.
- Credit sales are collected as follows: 70% in the same quarter of sales, 20% in the following
quarter, and 10% in the quarter after.
- Overhead expenses include 3000 EGP depreciation/ quarter.
- There are 10% of gross purchases are considered as cash purchases.
- Debit purchases are paid as follows: 60% in the same quarter of purchases, 25% in the
following quarter, and 15% in the quarter afterEighth:
Balance Sheet (B.S.) of the 31/12/2021
Assets Liabilities & Owner's Equity
Cash 200,000 Loan
Accounts payable
100,000
50,000
A/R 20,000 Capital 195000
Truck 29000
Equipment 36000
Depreciation (3000)
Materials 3000
Merchandise 60,000
Total Assets 345000 Total Liabilities and O'E 345000
Required: Prepare suitable budgets.
Step by step
Solved in 2 steps
