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

PT Manunggal sells its production during 2022 as many as 15,000 units with a selling price of Rp. 10,000 per unit. To produce 15,000 units, the fixed costs are Rp. 50 million and variable costs are Rp. 4,000 per unit. For 2023, it is estimated that the number of units sold will increase by 10%. Requested: Assuming the selling price, fixed costs and variable costs do not change, calculate the estimated operating profit/loss for 2023. Notes : Write it down along with the complete way of working
XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and it takes 16 workdays to receive it. The annual holding cost is 15% of purchase price. The price OMR 3 per kg. The company is operating 6 days per week. What is the minimum annual total cost in OMR? Round-up to the nearest integer a. 12184 b. None is correct c.12000 d. 8175 e. 9000
The demand for products is 10,000 units. The ordering cost is 40 OMR per order and the holding cost is 10 riyals per unit per annual. The EOQ will be a. 282.84 b. 335.41 c. 379.47 d. 296.64
A company manufacturing electronics equipment purchases transistors at Rs . 41 per unit. The annual requirement of transistors is 7000 units and the ordering cost is Rs 300 per order , carrying cost is. Rs. 8 per unit, lead time is 7 days. Calculate EOQ and reorder point where per day demand is 28 units ?
69) Western Company expects the following credit sales for the first five months of the year: January, $43,000; February, $58,000; March, $48,000; April, $54,000, May $58,000. Experience has shown that payment for the credit sales is received as follows: 60% in the month of sale, 25% in the first month after sale, 10% in the second month after sale, and the remainder is uncollectible. How much cash can Western Company expect to collect in March as a result of credit sales (current and past)? A) $28,800. B) $42,600. C) $48,000. D) $47,600. E) $41,100.
The Xenopeltis Company estimates its requirement, which is 39,000 units semiannually at a price of $4 per unit. The carrying cost at 15% of the price and its ordering cost at $90 per order. On a 360-day basis, determine the following: How much is the annual requirement? A. 78,000 units B. Php 39,000 C. Php 78,000 D. 39,000 units E. 156,000 units
Calculate the annual economic order quantity from the attached provided below
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 ?
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.
This year, Lambert Company will ship 1,500,000 pounds of goods to customers ata cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 ofrevenue (total revenue is $20 million), the amount of shipping cost assigned to thecustomer by using ABC would bea. unable to be determined.b. $8,000 ($0.80 per pound shipped).c. $24,000 (2% of the shipping cost).d. $12,000 (1% of the shipping cost).e. None of these.
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.)