UESTION $3$

The following information is available for Epol Enterprises:

Information

$(20$ Marks$)$

$1.$

$2.$ Actual and expected sales at R$20$ per unit $($excluding discounts$)$ are as follows:

On $30$ April $2020$ the bank account in the general ledger reflected a credit balance of R$15000.$

Actual

Budgeted

April $($units$)$

May $($units$)$

June $($units$)$

Cash sales

$5\mathrm{.}000$

$7000$

$4000$

Credit sales

$8000$

$6\mathrm{.}000$

$9\mathrm{.}000$

$3.$

A discount of $10\%$ is given to customers on cash sales.

$4.$

Customers who purchase on credit usually pay one month after the sale.

$5.$

The production records for finished goods reveal the following.

Actual

March R

Budgeted

April R

May R

June R

Production costs:

Direct material

$40000$

$36\mathrm{.}000$

$34000$

$35\mathrm{.}000$

Direct labour

$26000$

$24000$

$22\mathrm{.}000$

$23000$

Overheads

$18\mathrm{.}000$

$17-000$

$15000$

$16\mathrm{.}000$

$6.$

$7.$

$50\%$ of the direct material purchased is bought on credit and the balance is purchased by cheque. Creditors are usually paid two months after the purchase

Payment of overhead costs and selling and administrative costs are delayed by one month. Selling and administrative costs are as follows:

April $($Actual$)$

$8$

May $($expected$)$

June $($expected$)$

R$10500$

R$12000$

R$11500$

Employees involved in the production of finished goods are paid monthly.

$9$

Epol Enterprises expects to obtain a long$-$term loan of R$80000$ during June $2020.$

Required

Prepare the cash budget of Epol Enterprises for the period $01$ May $2020$ to $30$ June $2020.$Can you put answer in mancosa format.