1 New Way Ltd. has received some orders for the coming year. The planned sales for the first quarter of 2022 is in Table 1 below. 2 Required: Prepare: 3 1. Cash receipts for February (3 marks) 4 2. Cash payment for February (10 marks) S 3. Cash balance as at 28 February, given excepected cash balance as at 1 February is $13,000. (3 marks) 6 4. New Way Ltd. has a plan to purchase new sewing machines for $24,000. Will they have sufficient cash for the purchase? (1 marks) 7 5. Suggest 3 ways that New Way Ltd can improve its cash position (3 marks) B 9 10 Table 1 Dec 21 Jan-22 Feb-22 Mar 22 11 Sales (units) 11,000 8,000 10,000 9,500 12 Selling price (S/unit) WREFI HREFI REFI REFI 13 14 Account recevable policy: 13 All sales are on credit, 40% of sales are collected in the month of sales, 50% of sales are collected in the month following the sales, 10% 16 two months after the sales. 18 Inventory policy: 19 All production is made according to order, no ending finished goods inventory is kept. 20 - Ending raw materials are 20% of the raw materials needed for next month's production 21 Account payable polley: All purchase it on credit, payment for the purchase is made the month following the month of purchase 23 24 Budget assumptions 25 All variable costs budgets are prepared based on the most updated unit prices of materials and most updated labour rate at the standard 26 and labour hour per unit. - All fixed cost budgets are prepared according to the annual budget. 29 Selling and admin expenses 30-Selling and admin expenses are 1% of sales, paid to sales and admin teams at parent company 31 12 OFFICE USE ONLY 33 Requirement Original mark Moderated mark 17 22 27 28 34 15 36 37 38 39 40 1 2 3 4 5 Total c 0 25 Production capacity 30 Per hour 91 Per day 12 Per week 13 Per year (50 weeks 34 Normal tapacity (unit) 53 424 2,120 105,000 Maximum capacity units) 53 530 3,110) 159,000 $ per year 35 Manufacturing overhead costs 16 Variable MOH Indirect materials 37 Variable MOH-Utilities 35 F MON - Machine maintenance Fred MOL Depreciation of machinery 40 MOHurance 41 MOH Cleaning MOH - Rent 3 Total MOH per unit 1,060 3,000 1,080 4100 1200 12,000 12.000 Allocation based Output Direct labour hour Output Output Output Output Output Budgeted quantity Allocation of allocation hase rate 106,000 0.01 16,000 0.50 106,000 0.01 106,000 0.05 106,000 0.01 105,000 0.11 106,000 0.11 MOH per ult 0.01 0.08 0.01 OLOS 0.01 0.11 0.11 0.38 Standard cost per bag 46 OM D 1 MOH Standard per bag SO Markup $ 3.25 3.30 038 7.43 HREFI Operational data 2021 53 Production du 55 Sales volumen 56 Salon 15/unit 57 Cotton Coth Purchased 3. Purchased 5 Lago Rocha Cotton Cloth pricam per un unit lagunt Cotton Cathed Budget July-Dec 2011 54.000 54,000 REF: 8.100 54,000 54 000 700 2.20 0.50 3.100 54.000 54000 3,100 22 530 4000 540 2.400 DO 1.000 000 Adual data July Sept 2021 30,000 30,000 REFI 5,000 35,000 15.000 2.50 2.00 0.70 5,175 31.500 27.000 450 25 350 2475 270 200 300 1000 1000 - Dust lahut hinged thing 57 Direct labore Variatie MOR rett materials Vana MORU MOH Manoe 11 MOR.Dronen 7 MONT MOH Mant MUST FILL-STUDENT DETAILS DATA QUESTION 1 Ready QUESTION 2 QUES 1 New Way Ltd. has received some orders for the coming year. The planned sales for the first quarter of 2022 is in Table 1 below. 2 Required: Prepare: 3 1. Cash receipts for February (3 marks) 4 2. Cash payment for February (10 marks) S 3. Cash balance as at 28 February, given excepected cash balance as at 1 February is $13,000. (3 marks) 6 4. New Way Ltd. has a plan to purchase new sewing machines for $24,000. Will they have sufficient cash for the purchase? (1 marks) 7 5. Suggest 3 ways that New Way Ltd can improve its cash position (3 marks) B 9 10 Table 1 Dec 21 Jan-22 Feb-22 Mar 22 11 Sales (units) 11,000 8,000 10,000 9,500 12 Selling price (S/unit) WREFI HREFI REFI REFI 13 14 Account recevable policy: 13 All sales are on credit, 40% of sales are collected in the month of sales, 50% of sales are collected in the month following the sales, 10% 16 two months after the sales. 18 Inventory policy: 19 All production is made according to order, no ending finished goods inventory is kept. 20 - Ending raw materials are 20% of the raw materials needed for next month's production 21 Account payable polley: All purchase it on credit, payment for the purchase is made the month following the month of purchase 23 24 Budget assumptions 25 All variable costs budgets are prepared based on the most updated unit prices of materials and most updated labour rate at the standard 26 and labour hour per unit. - All fixed cost budgets are prepared according to the annual budget. 29 Selling and admin expenses 30-Selling and admin expenses are 1% of sales, paid to sales and admin teams at parent company 31 12 OFFICE USE ONLY 33 Requirement Original mark Moderated mark 17 22 27 28 34 15 36 37 38 39 40 1 2 3 4 5 Total c 0 25 Production capacity 30 Per hour 91 Per day 12 Per week 13 Per year (50 weeks 34 Normal tapacity (unit) 53 424 2,120 105,000 Maximum capacity units) 53 530 3,110) 159,000 $ per year 35 Manufacturing overhead costs 16 Variable MOH Indirect materials 37 Variable MOH-Utilities 35 F MON - Machine maintenance Fred MOL Depreciation of machinery 40 MOHurance 41 MOH Cleaning MOH - Rent 3 Total MOH per unit 1,060 3,000 1,080 4100 1200 12,000 12.000 Allocation based Output Direct labour hour Output Output Output Output Output Budgeted quantity Allocation of allocation hase rate 106,000 0.01 16,000 0.50 106,000 0.01 106,000 0.05 106,000 0.01 105,000 0.11 106,000 0.11 MOH per ult 0.01 0.08 0.01 OLOS 0.01 0.11 0.11 0.38 Standard cost per bag 46 OM D 1 MOH Standard per bag SO Markup $ 3.25 3.30 038 7.43 HREFI Operational data 2021 53 Production du 55 Sales volumen 56 Salon 15/unit 57 Cotton Coth Purchased 3. Purchased 5 Lago Rocha Cotton Cloth pricam per un unit lagunt Cotton Cathed Budget July-Dec 2011 54.000 54,000 REF: 8.100 54,000 54 000 700 2.20 0.50 3.100 54.000 54000 3,100 22 530 4000 540 2.400 DO 1.000 000 Adual data July Sept 2021 30,000 30,000 REFI 5,000 35,000 15.000 2.50 2.00 0.70 5,175 31.500 27.000 450 25 350 2475 270 200 300 1000 1000 - Dust lahut hinged thing 57 Direct labore Variatie MOR rett materials Vana MORU MOH Manoe 11 MOR.Dronen 7 MONT MOH Mant MUST FILL-STUDENT DETAILS DATA QUESTION 1 Ready QUESTION 2 QUES
