FG is preparing its cash budgets for January, February and March. Budgeted data are as follows: November December January February March Sales (units) 750 800 800 850 900 Production (units) 800 800 850 900 950 Direct labour and variable overheads incurred $48,000 $48,000 $51,000 $54,000 $56,000 Fixed overheads incurred (excluding depreciation) $20,000 $20,000 $20,000 $20,000 $20,000 The selling price per unit is $200. The purchase price per kg of raw material is $25. Each unit of finished product requires 2 kg of raw materials which are purchased on credit in the month before they are used in production. Suppliers of raw materials are paid one month after purchase. All sales are on credit. 80% of customers, by sales value, pay one month after sale and the remainder pay two months after sale. The direct labour cost, variable overheads and fixed overheads are paid in the month in which they are incurred. Machinery costing $100,000 will be delivered in February and paid for in March. Depreciation, including that on the new machinery, is as follows: Machinery and equipment $3,500 per month Motor vehicles $800 per month The opening cash balance at 1 January is estimated to be $15,000. Required: Prepare a cash budget for each of the three months January, February and March. October 21, 2015 Read More »
Calculate whether it is worthwhile opening the tourist attraction on 1 January. You should use expected value as the basis of your analysis October 21, 2015 Read More »
Prepare a statement for October that reconciles the budgeted contribution with the actual contribution. Your statement should show the variances in as much detail as possible October 21, 2015 Read More »
Discuss the performance of the company for October. Your discussion should give one possible reason for each of the operational variances October 21, 2015 Read More »
Explain why separating variances into their planning and operational elements should improve performance management. October 21, 2015 Read More »
Calculate the issue price of the Treasury bill, to the nearest $0.01, assuming there are 365 days in the year. October 21, 2015 Read More »
Kwick-Buy Clothing Ltd. who operate an online purchasing system, have experienced problems with their server which has crashed several times in the past week. Evaluate in detail………….. October 21, 2015 Read More »
A major banking group offers a variety of services to its customers and is also able to develop partnerships with organisations trading overseas or wishing to trade overseas. Critically evaluate October 21, 2015 Read More »