CHAPTER BUDGETING FOR PLANNING AND CONTROL Grup 4: Case/Situational Extended Problem Analysis Questions americal Questions 19 March Q.No. 112019 Old Q.No. 1 Mar. ca. have been summarized below: Jan. Sales unit 8.000 Months May Liabilities Share capital 10% debenture Retained earnings Accounts payable Dividend payable The balance sheet on 1st January, 2018 and the sales budget of Makalu Manufacturing Feb. Apr. 9,000 10,000 7,000 8,000 Balance Sheet at 15 January 2018 Rs. Assets Rs. 200,000 Inventory 130,000 Raw material (18,000 kg) 54,000 12,000 Finished goods (8,000 units) 72,000 50,000 Accounts receivable 46,200 8,000 Cash 37,800 Machinery 190,000 400,000 400,000 Selling price per unit will be Rs 12. The sales will be 40% in cash and 60% on credit. The credit sales will be collected, 30% in the month of sales and 70% in the next month of sales. Of the credit sales collected in the same month of sales will enjoy a discount facility of 5%. A minimum balance of cash will be Rs 30,000 for each month. All expenses except purchase of material will be payable in the month when they become due. Purchase of material will be paid in the next month of purchase. The 10% debenture will retire on 1st January The desired ending inventory of finished goods and the raw material will be sufficient to meet next month's sales and production need respectively. One unit of finished product will need 2 kgs of materials and material will cost Rs 2 per kg. Direct labour cost per unit of Output produced will be Rs 2. The variable manufacturing overhead cost per unit will be Re 1 per unit of output. The fixed manufacturing overhead cost will be Rs 90,000 p.a. and depreciation of machinery Rs 1,500 per month. Short-term loan in a multiple of Rs 10,000 will be available from a bank at an interest rate of 12% p.a. to meet the cash deficiency. Repayment of bank loan will be in a multiple of Rs 1.000. Loan repayment and sale of finished products will be FIFO basis. The interest will be payable for the amount of loan repaid. - wil where Required: a. Production budget for three months ending March b. Material purchase budget for three months enng March C. Cash collection and disbursement budget for three months anding of March d. Budgeted income statement for March end. Budgeted balance sheet on 314 March 2018