Use the information provided below to calculate the number of units of Product Tex that must be produced for July and August.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Answer the questions from the information provided.
2.1
Use the information provided below to calculate the number of units of Product Tex that must be produced for July and August.
INFORMATION
The estimated sales volume of Product Tex is 25 000 units for June, 21 000 units for July, 30 000 units for August and 36 000 units for September. The policy of management is to maintain an ending finished goods inventory each month equal to 20% of the current month’s budgeted sales and 30% of the following month’s budgeted sales.
2.2
Study the information provided below and calculate the expected value of closing inventory as at 31 December 2022, if the FIFO method of
INFORMATION
The following information was supplied by Sunbeam Manufacturers for 2022 in respect of its finished goods:
|
|
R |
|
Inventory on 01 January |
640 000 |
|
Cost of production of finished goods manufactured |
570 000 |
|
Cost of goods sold |
435 000 |
|
Sales value of the goods sold |
675 000 |
2.3
Use the information provided below to determine the cost (as a percentage, expressed to two decimal places) to Banda Stores of not accepting the discount.
Fego Manufacturers granted credit terms of 60 days to Banda Stores but the manufacturer is prepared to allow a rebate of 2½ % if Banda Stores pays the account within 12 days.
2.4
- Use the information given below to calculate the annual Economic Order Quantity
INFORMATION
The following details have been supplied by Nola Limited for one of its products:
|
Sales per month |
7 500 units |
|
Carrying costs as a percentage of the unit purchase price |
20% |
|
Purchase price per unit |
R100 |
|
Cost of placing an order |
R10 |
2.5
Study the information given below and calculate the value of closing inventory as at 31 March 2022 using the weighted average cost method.
INFORMATION
Printgo Suppliers had an inventory of 10 printers at R2 000 each on 01 March 2022. The following transactions took place during March 2022 in respect of the printers that it sells:
|
08 March |
32 units at R2 100 each were purchased. |
|
09 March |
12 units purchased on 08 March were returned to the supplier. |
|
20 March |
20 units at R2 200 each were purchased on 20 March 2022. |
Printgo Suppliers sold 40 printers at R4 000 each during March 2022.
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