50). The following information applies to questions 50 and 51

The sales budget for Fred Limited contains the following information:

	October	November	December
Units	300	550	700
$ (thousands)	75,000	165,000	210,000

Sales are all on credit, with 30% collected in the month of sale and 70% in the following month. Finished goods inventory at the end of each month should be 38% of the following month's sales requirements.

MAKE a finished goods inventory budget and use it to answer questions 50 and 51.

Question 50 (2 marks):

Calculate the closing finished goods inventory, in units,forOctober.

Answer:

Question 51 (2 marks):

Calculate the required production, in units,forOctober.

Q2 The sales and raw materials purchases budgets of Lokim Limited are summarised as follows:

Month	January	February	March
Sales (units)	4,100	4,300	4,500
Sales ($)	49,200	51,600	54,000

Month	January	February	March
Purchases (kg)	2,700	2,900	3,100
Purchases ($)	21,600	24,650	26,350

Lokim collects 39% of accounts receivable in the month of sale, 58% in the following month, and 3% are expected to go bad. Customers who pay within the first month of sale receive a 1% discount. Lokim settles 48% of its accounts payable in the month of purchase, and the remainder in the following month.

Question 52 (2 marks):

Calculate the total amount of cash expected to be collected in February from receivables.

Answer:

53 Calculate the total amount of cash expected to paid in February.