QUESTION 1 REQUIRED Prepare the Cash Budget for a project of Aston Enterprises for the period 01 May 2021 to 31 July 2021. (Ensure that your cash budget has separate monetary columns for each month.) INFORMATION The following information was provided by Aston Enterprises: 1. The bank balance on 30 April 2021 is expected to be RSO 000 (favourable). 2. Expected sales (excluding discounts) are as follows: April May June July R R R R Cash sales 100 000 160 000 170 000 120 000 Credit sales 140 000 150 000 180 000 230 000 3. A discount of 5% is given to customers on cash sales. 4. Customers who purchase on credit usually pay one month after the sale. 5. The production estimates reveal the following: Production costs March April May June July R R Direct materials 45 000 55 000 60 000 75 000 77 000 Direct labour 32 000 35 000 36 000 39 000 41 000 Overheads 25 000 27 000 29 000 33 000 35 000
QUESTION 1 REQUIRED Prepare the Cash Budget for a project of Aston Enterprises for the period 01 May 2021 to 31 July 2021. (Ensure that your cash budget has separate monetary columns for each month.) INFORMATION The following information was provided by Aston Enterprises: 1. The bank balance on 30 April 2021 is expected to be RSO 000 (favourable). 2. Expected sales (excluding discounts) are as follows: April May June July R R R R Cash sales 100 000 160 000 170 000 120 000 Credit sales 140 000 150 000 180 000 230 000 3. A discount of 5% is given to customers on cash sales. 4. Customers who purchase on credit usually pay one month after the sale. 5. The production estimates reveal the following: Production costs March April May June July R R Direct materials 45 000 55 000 60 000 75 000 77 000 Direct labour 32 000 35 000 36 000 39 000 41 000 Overheads 25 000 27 000 29 000 33 000 35 000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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