managment accounting

Sit Co. manufactures wooden chairs. The following information has been provided regarding the coming financial year. The sales price per unit is expected to remain at $50 per chair. Sit Co. would like to ensure that closing inventory of finished chairs is the closing inventory of wood is increased by Required: (a) Explain why Sit Co. only needs to produce chairs when it has budgeted sales of (b) Calculate the number of metres of wood required to fulfil the production budget and state the budgeted cost of this wood. (c) Calculate the number of labour hours required to produce chairs and show the cost of the labour and direct overhead associated with this. (d) Sit Co. produces management accounts on a marginal costing basis. Calculate the total budgeted contribution for the period. Valli Co is preparing its cash budget for 208. Expected sales revenue for the first six months of the year are as follows: Normally of sales revenues are received in the month of sale, in the month after two months after and is written off as bad debts. Revenues have been assumed to follow a time series with Revenue = M,withM=themonthnumber. Vaili Co expects to have opening inventory for each month of of that month's demand. The purchase cost per unit is assumed to be of sales price. The following are expected to occur in May 20x8: - Valli Co settling its tax liability for the year ended 31 December 207 of - Valli Co declaring a final dividend of for the year to 31 December 20x7, the dividend to be paid on 15 June 208 - Quarterly rent of for the period June to August 208 being paid in advance - The depreciation charge for May being - Three lorries being sold for $30000, with a loss on sale of - Bad debts of being written off Required: (a) What are the expected sales receipts for March? (b) What are the expected purchases for Aprit? (c) State whether the following would be includedot be included in the cash budget for May. (i) Tax for the year ended 31 December 207 of $50000 (ii) Dividend for the year ended 31 December 207 of (iii) Quarterly rental for the period June to August 208 of (iv) Depreciation charge of (v) Loss on sale of lorries of $4000 (vi) Bad debts written off of $15860 (d) July 208 corresponds to in the time series and its revenues are expected to be of trend. What is the expected sales revenue for July 20x8? (e) At the end of September 20x8, Valli Co's accountant expects there to be a temporary cash shortage. Answer yes or no to whether the following measures could alleviate the cash shortage. (i) Offering more generous payment periods to customers (ii) Delaying paying suppliers (iii) Organising an overdraft Sit Co. manufactures wooden chairs. The following information has been provided regarding the coming financial year. The sales price per unit is expected to remain at $50 per chair. Sit Co. would like to ensure that closing inventory of finished chairs is the closing inventory of wood is increased by Required: (a) Explain why Sit Co. only needs to produce chairs when it has budgeted sales of (b) Calculate the number of metres of wood required to fulfil the production budget and state the budgeted cost of this wood. (c) Calculate the number of labour hours required to produce chairs and show the cost of the labour and direct overhead associated with this. (d) Sit Co. produces management accounts on a marginal costing basis. Calculate the total budgeted contribution for the period. Valli Co is preparing its cash budget for 208. Expected sales revenue for the first six months of the year are as follows: Normally of sales revenues are received in the month of sale, in the month after two months after and is written off as bad debts. Revenues have been assumed to follow a time series with Revenue = M,withM=themonthnumber. Vaili Co expects to have opening inventory for each month of of that month's demand. The purchase cost per unit is assumed to be of sales price. The following are expected to occur in May 20x8: - Valli Co settling its tax liability for the year ended 31 December 207 of - Valli Co declaring a final dividend of for the year to 31 December 20x7, the dividend to be paid on 15 June 208 - Quarterly rent of for the period June to August 208 being paid in advance - The depreciation charge for May being - Three lorries being sold for $30000, with a loss on sale of - Bad debts of being written off Required: (a) What are the expected sales receipts for March? (b) What are the expected purchases for Aprit? (c) State whether the following would be includedot be included in the cash budget for May. (i) Tax for the year ended 31 December 207 of $50000 (ii) Dividend for the year ended 31 December 207 of (iii) Quarterly rental for the period June to August 208 of (iv) Depreciation charge of (v) Loss on sale of lorries of $4000 (vi) Bad debts written off of $15860 (d) July 208 corresponds to in the time series and its revenues are expected to be of trend. What is the expected sales revenue for July 20x8? (e) At the end of September 20x8, Valli Co's accountant expects there to be a temporary cash shortage. Answer yes or no to whether the following measures could alleviate the cash shortage. (i) Offering more generous payment periods to customers (ii) Delaying paying suppliers (iii) Organising an overdraft