Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 4.1.1 please, thanks so much. QUESTION 4 (20 marks) This question consists of two separate parts, both of which must be answered. PART 4.1

Question 4.1.1 please, thanks so much.

image text in transcribed
QUESTION 4 (20 marks) This question consists of two separate parts, both of which must be answered. PART 4.1 {13} Mcqomo Limited manufactures and sells one type of a household bin. The company is preparing budgets for the fourth quarter of 2021 and has gathered the following information to assist in the budget preparation: (a) The marketing department estimates that sales for the next three months will be as follows: Units October .............................................................................................. 2 250 November ........................................................................................... 2 500 December ............................................................................................ 2 750 The selling price of the bin is R250 per unit. (b) 50% of the sales are on credit. Credit sales are expected to be collected as follows: > 25% in the month of sale, > 75% in the month following the month sale. The accounts receivable on 01 October 2021 in respect of sales during September will be R350 000. (c) The company normally maintains nished goods inventories equal to 750 units. The closing inventory at the end of September is expected to be equal to 450 units, but it will normalise in October. REQUIRED: 4.1.1 Prepare the sales budget in Rands, by month (i.e. October, November and December), (3) for the quarter. 4.1.2 Calculate the expected cash collections from customers, by month (i.e. October, (6) November and December), for the quarter 4.1.3 Prepare the production budget in units, by month (i.e. October, November and (4) December), for the quarter

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

Intermediate Accounting Volume 1

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick

7th Edition

1260306747, 978-1260306743

More Books

Students also viewed these Accounting questions

Question

find all matrices A (a) A = 13 (b) A + A = 213

Answered: 1 week ago

Question

3. It is the commitment you show that is the deciding factor.

Answered: 1 week ago