ASSIGNMENT 3 (60 Marks) A) X Ltd makes sales on credit in the first four months of the year as follows. Month GHCO January 00 February 50 March 60 April 40 50 a) Cash is received from debtors as follows. 60% after Imonth; 30% after 2 months and 10% after 3 months. The following information is also available: b) The company purchases a machine costing GHC50,000 in January. The money is paid in the following month. Rent is paid quarterly in advance. The rent is GHC10,000 per month and January is the first month of the quarter. Rates are paid at the rate of GHC1,000 per month. e) Sales for October, November and December of the prior year were GHC70,000, GHC85,000 and GHC90,000 respectively Salaries are GHC10,000 per month, 80% is paid out in the month incurred and the other 20% overtime is paid in the following month. Required Calculate the cash flow for the first four months of the year and show the cash balance at the beginning and end of each month. The opening cash balance at 1 January was GHC100,000. (40 Marks) f) B) Amu Ltd manufactures Produce Callestemon. Information relating to this product is given below. Each Callestemon uses 2kg of material Q at a standard cost of C30 per kg, 6 hours of labour at C10 per hour. Variable overheads have a standard cost of C15 per hour. The company has fixed production overheads of GHC20,000 and is budgeting to produce 500 units. A standard profit of C100 is added to cost to determine standard price. You are require to prepare the standard cost card for product Callestemon. (10 Marks) ASSIGNMENT 3 (60 Marks) A) X Ltd makes sales on credit in the first four months of the year as follows. Month GHC'O January 00 February 50 March 60 April 40 50 a) Cash is received from debtors as follows. 60% after 1month; 30% after 2 months and 10% after 3 months. The following information is also available: b) The company purchases a machine costing GHC50,000 in January. The money is paid in the following month. Rent is paid quarterly in advance. The rent is GH10,000 per month and January is the first month of the quarter. c) d) e) Rates are paid at the rate of GHC1,000 per month. Sales for October, November and December of the prior year were GHC70,000, GHC85,000 and GH90,000 respectively Salaries are GHC10,000 per month, 80% is paid out in the month incurred and the other 20% overtime is paid in the following month. f) Required Calculate the cash flow for the first four months of the year and show the cash balance at the beginning and end of each month. The opening cash balance at 1 January was GHC100,000. (40 Marks)