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UVW Ltd manufactures one product line - Product Z. Sales of Product Z over the next few months are planned to be as follows:

 

 


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UVW Ltd manufactures one product line - Product Z. Sales of Product Z over the next few months are planned to be as follows: i. Cash in hand. At 1 August the business plans to have a bank balance (in funds) of RM21,000. ii. Demand Month Units July 18,000 August September October 24,000 22,000 18,000 Each Product Z sells for RM3. iii. Receipts from sales. Credit customers are expected to pay as follows: 60 per cent during the month of sale 38 per cent during the following month. The remaining trade receivables are expected to go bad (that is, to be uncollectable). Cred customers who pay in the month of sale are entitled to deduct a 2 per cent discount from t invoice price. iv. Finished goods inventories. Inventories of finished goods are expected to be 4,000 units a July. The business's policy is that, in future, the inventories at the end of each month sho equal 20 per cent of the following month's planned sales requirements. V. Raw materials inventories. Inventories of raw materials are expected to be 4,000 kg on 1 July. The business's policy is that, in future, the inventories at the end of each month sho equal 50 per cent of the following month's planned production requirements. Each Prod Z requires 0.5 kg of the raw material, which costs RM2.2/kg. Raw materials purchases a paid in the month after purchase.

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