(SLO 2,4,5 &6) (24 Marks) Numerical Problems: Note: Answer any two of the following questions: 1. Prepare a cash budget for the months of March, April and May 2019 on the basis of the following information. Income and Expenditure forecasts: Months Credit Credit Wages Manu - Office Selling Sales Purchases facturing. Expenses Expenses Expenses January $150,000 $50,000 $5,000 $4,000 $2,000 $4,000 February 145,000 40,000 3,000 5,000 3,000 5,000 March 120,000 50,000 2,000 4,000 4,000 4,000 April 135,000 60,000 4,000 3,000 3,000 3,000 May 125,000 70,000 2,000 4,000 2,000 4,000 June 135,000 30,000 5,000 3,000 5,000 3,000 Other Information is as follows: 1. Cash balance on 1st March, 2018 $250,000 2. Plant costing $ 50,000 is due for delivery in May, payable 10% on delivery and the balance after 3 months. 3. Advance tax of $10000 each is payable in April and May 4. Period of credit allowed (i) by suppliers two months and (ii) to customers one month. 5. Lag in payment of manufacturing expenses one month 6. Lag in payment of office and selling expenses one month 7. Wages are paying in same month. 2. The following information has been taken from the accounting records of Manufacturing company for year December, 2019: Particulars Raw materials inventory, January 1 Raw materials inventory, December 31 Selling expenses Utilities, factory Direct labor cost Depreciation, factory Purchase of raw materials Sales Insurance, factory Supplies, factory Administrative expenses Indirect labor Maintenance, factory Work in progress inventory, January 1 Work in progress inventory, December 31 Finished goods inventory, January 1 Finished goods inventory, December 31 Amount $300,000 50,000 50,000 50,000 40,000 30,000 2,500,000 5,000,000 50,000 30,000 150,000 50,000 100,000 150,000 100,000 250,000 100,000 Management wants these date organized in a better format so that financial statements can be prepared for the year. Required: 1. Prepare a schedule of cost of goods manufactured. 2. Prepare the cost of goods sold 3. Prepare a pro forma income statement for December, 2019. 3. The expenses for budgeted production of 10,000 units in a Manufacturing Company is given below: + Particulars Materials Labor Variable over head Fixed overhead ($1 50,000) Variable expenses (Direct) Selling expenses (10% fixed) Distribution expenses ( 25% fixed) Administration expenses ($150,000) Total cost per unit Per unit $25 20 20 30 10 20 10 15 $150 Prepare a flexible budget for production for 15,000 and 20,000 units and indicate cost per unit at both the levels