Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you help me the questions? Robert Gateau is planning to start his own business selling cakes on 1st January 2022.+ He will rent a

can you help me the questions?

image text in transcribedimage text in transcribedimage text in transcribed
Robert Gateau is planning to start his own business selling cakes on 1st January 2022.+ He will rent a high street shop selling direct to customers on a cash basis and he will also sell in bulk to local hotels. + He plans to hire three members of staff and put capital of $60,000 in the business.+ Budgeted purchases and sales for the first four months of trading are as follows:+ January+ February+ March April Sales Ed 20,000+ 25,000+ 35,000+ 20,000+ Purchases f 21,000+ 18,000+ 14,0004 12,000+ The following information is also available:+ i. Purchases for January will be paid for in full during January 2022. All purchases from February 2022 will be paid for in the month received and will receive a 1% discount.+ ii. 60% of sales will be for cash and 40% on two months' credit.+ ii. Salaries of f12,000 each month are paid one month in arrears.+ iv. Robert Gateau plans to take cash drawings of $4,000 each month out of the business.+ V. Equipment costing $40,000 is to be purchased on 1st January. Payment is to be made in two equal monthly instalments commencing in January 2023+ vi. Depreciation of the above equipment is 20% straight line.+ vii. Other expenses of $5,000 are to be paid monthly beginning January 2022.+ vili. The high street shop will be rented at $6,000 per month (in advance).+ 3b) Complete the Cash Budget (below) for each of the three months January, 16 marks February and March 2022.+ Jan+ Feb Mary INFLOWS/ RECEIPTS + Receipts from cash sales+ Receipts from credit sales+ tTOTAL RECEIPTS t. OUTFLOWS/ PAYMENTS Payments for cash purchases+ t t t. TOTAL PAYMENTS t. NET CASH FLOW t. OPENING CASH CLOSING CASH 3c) Describe in detail TWO ways in which Robert could improve his 6 marks budgeted cash position. + 1.+ (insert your answer here)+ 2.+ (insert your answer here)+Luna Tart intends to start selling pastries in competition with Robert Gateaux. She has the following predicted costs for her factory for the next month. + Overheads E- salaries+ 3,000 power+ 1,500 rent+ 2,200 depreciation+ 500+ Direct labour hours 600 Machine hours 200- + Page 9 of 137 3d) What selling price should Luna charge for a pastry order (job) with the 6 marks following specifications: + Ingredients (flour, sugar, eggs, chocolate chips) costing $8 and 20 minutes of direct labour at $6 per hour. Her policy is to use traditional absorption costing plus a 50% mark up on Full Cost. (insert your answer here)+ ++ 3e) Discuss one qualitative factor that Luna should consider when deciding 2 marks whether to produce her pastries.+ (insert your answer here)+

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Integrated Accounting For Windows

Authors: Dale Klooster

7th Edition

0538747978, 9780538747974

More Books

Students also viewed these Accounting questions

Question

Explain the Pascals Law ?

Answered: 1 week ago

Question

What are the objectives of performance appraisal ?

Answered: 1 week ago

Question

State the uses of job description.

Answered: 1 week ago