Question
(a) LeverUni Bangladesh has forecasted purchases on account to be BDT 210000 in March, BDT 270000 in April, BDT 317000 in May, and BDT 381000
(a) “LeverUni Bangladesh” has forecasted purchases on account to be BDT 210000 in March, BDT 270000 in April, BDT 317000 in May, and BDT 381000 in June. 60 percent of purchases are paid for in the month of purchase, the remaining are paid in the following month.
What are budgeted cash payments for April?
(b) Taba Bangladesh intends to produce special type of leather handbags for the upcoming season. The production budget for the next four months is: June 5000 units, July 6800 units, August 7200 units, September 7700 units. Each handbag requires 0.5 square meters of leather. Its leather inventory policy is 35 percent of next month's production needs. On June 1 leather inventory was expected to be 1800 square meters. Leather is expected to cost BDT 6 per square meter in June.
What is the expected cost of leather purchases in June?
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