Q.4) REX Co. Ltd. is to start production on 1st January 2018. The prime cost of a unit is expected to be Rs. 40 (Rs. 16 per materials and Rs. 24 for labour). In addition, variable expenses per unit are expected to be Rs. 8 and fixed expenses per month Rs. 30,000. Payment for materials is to be made in the month following the purchase. One-third of sales will be for cash and the rest on credit for settlement in the following month. Expenses are payable in the month in which they are incurred. The selling price is fixed at Rs. 80 per unit. The number of units to be produced and sold is expected to be: January 900; February 1200; March 1800; April 2000; May 2,100 June 2400 Required: Draw a Cash Budget indicating cash requirements from month to month.

Q.4) REX Co. Ltd. is to start production on 1st January 2018. The prime cost of a unit is expected to be Rs. 40 (Rs. 16 per materials and Rs. 24 for labour). In addition, variable expenses per unit are expected to be Rs. 8 and fixed expenses per month Rs. 30,000. Payment for materials is to be made in the month following the purchase. One-third of sales will be for cash and the rest on credit for settlement in the following month. Expenses are payable in the month in which they are incurred. The selling price is fixed at Rs. 80 per unit. The number of units to be produced and sold is expected to be: January 900; February 1200; March 1800; April 2000; May 2,100 June 2400 Required: Draw a Cash Budget indicating cash requirements from month to month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

tamarisk, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows. Quarter Units First 96,000 Second 180,000 Third 660,000 Fourth 144,000 Annual total 1,080,000 Tamarisk incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Tamarisk will incur fixed manufacturing costs of $864,000 and fixed nonmanufacturing costs of $1,296,000. Tamarisk will sell its product for $4 per unit. (a) Determine the amount of net income Tamarisk will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net income (Integral Approach) $ $ $ $…
A 1500 square foot office building will be leased at $12.00 per square foot and about 97.5% of the building is expected to be occupied. There is a lobby at the entrance of the building whích contains vending machines that will earn $900 over the entire year. Operating expenses are projected at $6.25 per square foot and an expense stop will be set at $5.75 per square foot. Some credit losses are anticipated to be about 1.5% of potential rent. In addition, some tenants will be granted one month of free rent and the total cost will be equal to about 5.0% of potential rent. Finally, the landlord plans to set aside $0.75 per square foot in a CAPEX fund. What will be net operating income (NOI)? Round your answer to the nearest dollar. Your Answer: Answer
A manufacturer of ovens sells them for $1,370.00 each. The variable costs are $1,020.00 per unit. The manufacturer's factory has annual fixed costs of $2,460,000.00. Given the expected sales volume of 3,700 units for this year, what will be this year's net income? Round to two decimal places
Dylon Shops estimates the average sales of production is RM30500 per month.The price of shirt is RM25, working time is between 8.30a.m until 12.30p.m. and 2.30p.m until 6.30p.m. for 24 hours working days in a month , calculate the number of tailors needed if one tailor can sew a shirt about 1.5 hours ?
We plan to make 20,600 cases of applesauce this month. Move the appropriate raw materials into production. Our standard cost of raw materials is $8.55 per case. Answer the value and places youd record this on cash flow, balance sheet and or income statement.
2. EOQ / Production / Discounts A machine company uses 3000 brackets during the course of a year. The brackets are bought from an external supplier at a price of 50 kr. each and will be received the same day as the order is placed. The average ordering cost is 187.50 kr. per order. The company uses an interest rate of 18% to account for the cost of capital, the cost of storage and handling is estimated to 4% and insurance to 3% of the value. You can assume that there are 250 working days in one year. a. Determine the economic order quantity for the brackets. b. Given the optimal order size from a, calculate the following: i Cycle time. i. Average inventory level. i. Annual inventory cost. iv. Annual ordering cost. The company is able to produce the brackets themselves at a rate of 60 per day. The fixed cost of setting up for production run is 600 kr. You can also assume that the variable cost of production is equal to the price when buying from an external supplier. c. What is the…
Sarasota, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows. Quarter Units First 64,000 Second 120,000 Third 440,000 Fourth 96,000 Annual total 720,000 Sarasota incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Sarasota will incur fixed manufacturing costs of $576,000 and fixed nonmanufacturing costs of $864,000. Sarasota will sell its product for $4 per unit. 1. Determine the amount of net income Sarasota will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net income (Integral Approach) Net income (Discrete Approach)…
A manufacturing company, VMTC PLC, makes the product, blitz. Monthly sales forthe first five months of 2022 have been estimated as: Month UnitsJanuary 210 000February 180 000March 210 000April 220 000May 200 000Additional Information:i. Actual units sold in 2021 November and December were 190 000 and 220 000,respectively.ii. One unit of blitz requires 2 kg of material at $3.50 per kg.iii. One unit of blitz requires half an hour of direct labour at a rate of $12 per hour.iv. Based on past experience, 60% of cash is received in the month of sale, 25% thefollowing month, 10% two months after and 5% is usually irrecoverable.v. Selling price is $18 per unit.vi. The company intends to have finished stock at the end of each month equivalent to15% of the following month’s budgeted sales.…
At present the manufacturing plant of laksiri Ltd is operating at 50% of its capacity. The following details are related to plant. Rs. Variable cost (Per Unit) 12 Selling Price(Per Unit) 14 Total Fixed cost 45,000 Present Production 20000 units If an exporter offers to bye 10,000 units per month at the rate of Rs.13 per unit Should Laksiry Ltd. accept this offer? Confirm your answer with requird calculations.
The factory producing ornaments has a production capacity of 1 million units/year. 750 thousand units/year production is planned for 2017. Since the sales value of a trinket is 0.7 $; Fixed expenses = 2300 $; Variable expenses = 0.2 $ / unit. How many productions need to be made to make a profit of 35000 $?
Crane Industries produces and sells a cell phone-operated home security control systems. Information regarding the costs and sales during May 2022 is as follows. Unit selling price $45.00 Unit variable costs $25.20 Total monthly fixed costs $124,000 Units sold 8,400 Prepare a CVP income statement for Crane Industries for the month of May. (Round per unit answers to 2 decimal places, e.g. 15.25.)
Using the data below, estimate the direct labor costs per unit for 2021. Consider carefully the labor effort required, on average, to get one unit of sale. Selling price per unit is $70. Ending inventory each year is zero. Production capacity is #20,000 per year. Inflation is zero. It is a several week warranty. REVENUE Direct Materials Factory & Equipment Lease Utilities Selling and Administration Maintenance Legal Fees Direct Labour Patent Amortization Utilities Selling and Administration Maintenance Legal Fees Direct Labour Patent Amortization Profit Warranty replacements (#) O5.00 to 5.50 O 5.51 to 5.99 O 5.90 to 6.10 O 6.11 to 6.20 O 6.21 to 6.50 O No answer text provided. Year 2018 Year 2019 $896,000 $1,085,000 234,000 150,000 59,000 242,400 65,000 O 78,000 O 59,000 242,400 65,000 0 78,000 0 67,600 200 288,000 150,000 68,000 264,000 80,000 23,000 96,000 30,000 68,000 264,000 80,000 23,000 96,000 30,000 86,000 500 Year 2020 $1,204,000 324,000 150,000 74,000 277,600 123,000 11,000…