The ken berhad(KB) and its subunits must prepare budgets yearly. One of KB subunit is Island Ice Cream (IIC), a functioning producer of dairy products and famous for its delicious ice cream. Assume that IIC prepares monthly cash budgets. Relevant data from assumed operating budgets for 2017 are as follows: January February RM BM Sales 460,000 412,000 Direct materials purchases 185,000 210,000 Direct labour 70,000 85,000 Manufacturing overhead 50,000 65,000 Selling and administrative expenses 85,000 95,000 IIC sells its ice cream in university's shops located in selangor. Collections are expected to be 75% in the month of sale and 25% in the month following sale. IC pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. Additional information: i. Sales: December 2018 was RM320,000 ii. Purchases of direct materials: December 2018 was RM175,000 iii. Other receipts: January – Donation received RM2,000. February – Sale of used equipment RM4,000 iv. Other disbursement: February – Purchased equipment RM10,000 V. Repaid debt: January RM30,000. The company's cash balance on January 1, 2019 is expected to be RM50,000. The company wants to maintain a minimum cash balance of RM45,000. 1.Prepare schedule of collections from customer for January and February 2019.
The ken berhad(KB) and its subunits must prepare budgets yearly. One of KB subunit is Island Ice Cream (IIC), a functioning producer of dairy products and famous for its delicious ice cream. Assume that IIC prepares monthly cash budgets. Relevant data from assumed operating budgets for 2017 are as follows: January February RM BM Sales 460,000 412,000 Direct materials purchases 185,000 210,000 Direct labour 70,000 85,000 Manufacturing overhead 50,000 65,000 Selling and administrative expenses 85,000 95,000 IIC sells its ice cream in university's shops located in selangor. Collections are expected to be 75% in the month of sale and 25% in the month following sale. IC pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. Additional information: i. Sales: December 2018 was RM320,000 ii. Purchases of direct materials: December 2018 was RM175,000 iii. Other receipts: January – Donation received RM2,000. February – Sale of used equipment RM4,000 iv. Other disbursement: February – Purchased equipment RM10,000 V. Repaid debt: January RM30,000. The company's cash balance on January 1, 2019 is expected to be RM50,000. The company wants to maintain a minimum cash balance of RM45,000. 1.Prepare schedule of collections from customer for January and February 2019.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The ken berhad(KB) and its subunits must prepare budgets yearly. One of KB subunit is Island Ice
Cream (IIC), a functioning producer of dairy products and famous for its delicious ice cream. Assume
that IIC prepares monthly cash budgets. Relevant data from assumed operating budgets for 2017 are
as follows:
January
February
RM
BM
Sales
460,000
412,000
Direct materials purchases
185,000
210,000
Direct labour
70,000
85,000
Manufacturing overhead
50,000
65,000
Selling and administrative expenses
85,000
95,000
IIC sells its ice cream in university's shops located in selangor. Collections are expected to be 75% in
the month of sale and 25% in the month following sale. IC pays 60% of direct materials purchases in
cash in the month of purchase, and the balance due in the month following the purchase. All other
items above are paid in the month incurred.
Additional information:
i.
Sales: December 2018 was RM320,000
ii.
Purchases of direct materials: December 2018 was RM175,000
iii.
Other receipts: January – Donation received RM2,000.
February – Sale of used equipment RM4,000
iv.
Other disbursement: February – Purchased equipment RM10,000
V.
Repaid debt: January RM30,000.
The company's cash balance on January 1, 2019 is expected to be RM50,000. The company wants to
maintain a minimum cash balance of RM45,000.
1.Prepare schedule of collections from customer for January and February 2019.
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