preview

Exam Management Accounting

Satisfactory Essays
Open Document

School of Economics and Management /HES

Management Accounting
Year 1
Answers

Codes: MA1VP1EL01-, MA1VP1ES02, - MA1VP1FAO1-, MA1VP1IM01 -,MA1VP1TA01 - Test 2-resit
Programs: IBMS, IBL, IFM,IM and TMA

Date: January 23, 2013

Time: 17.15-19.15 hrs

Allowed: HvA-calculator (non-programmable) Scrap paper

Not allowed: Dictionary, books, other papers than handed out

Number of points per question:

Question
I
II
III
IV
V
Total
Points
10
10
10
10
10
50

Grade = (Total number of points) / 5.0

NOTE: Answer only on the answer sheet provided and not on this question paper. Show your calculations (except for multiple-choice questions or when otherwise stated). In …show more content…

d. includes only fixed costs, whereas a flexible budget includes only variable costs.

Question 2: BUDGETING PROCESS: CASH BUDGET (10 points)

James International is in the construction business. In 2010, it is expected that 30 percent of a month 's sales will be received in cash, with the balance being received the following month. Of the purchases, 10 percent are paid during the month of purchase, 50 percent are paid the following month, and the remaining 40 percent are paid in two months. The sales force receives $1,500 a month base pay plus a 4 percent sales commission. Labor expenses are expected to be $4,000 a month. Other operating expenses are expected to run about $4,500 a month, including $500 for depreciation. The ending cash balance for 2009 was $18,000.

Sales
Purchases
2009—Actual

November
$100,000
$60,000 December
150,000
70,000
2010—Budgeted

January 50,000
80,000
February
80,000
60,000 March
60,000
70,000 Required:

2.1) Prepare a cash budget and determine the projected ending cash balances for the first three months of 2010. (8 points)---minus 1 point per mistake, no deduction if same mistake is made for another month.

James International
Cash Budget
For the Three Months Ended March 31, 2010

January
February
March
Cash receipts:

Sales from previous

Get Access
Related
Get Access