cashbudget
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 17P: Unknown Book Balance (Appendix 6.1) The following information pertains to the Cash account of...
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4C. Draw up a cashbudget for Amal showing the balance at the end of each month, from the following information for the six months from July to December 2019:
(a) Opening cash (including bank) balance on 1 July 2019 OMR 3600
(b) Production in units:
Jan 500
Feb800
March 700
April 900
May1000
June850
July890
Aug1050
Sep650
Oct750
Nov 900
Dec800
(c) Raw materials used in production cost OMR 25 per unit. Of this, 75 per cent is paid in the month of production and remaining balance in the month after production.
(d) Direct labour costs of OMR 20 per unit are payable in the month of production.
(e) Variable expenses are OMR 10 per unit, payable 50 per cent in the same month as production and remaining balance in the month after production.
(f) Sales at OMR 70 per unit:
Jan 450
Feb 600
March 900
April 800
May 850
June 700
July 1,000
Aug 800
Sep 900
Oct 500
Nov 600
Dec 750
Debtors to pay their accounts one month after that in which sales is made
(g) Fixed expenses of OMR 1,200 per month payable each month.
( h) Machinery costing OMR 6,000 to be paid for in September 2019.
(i) Will receive a Royalty of OMR 7,500 in November 2019.
(j) Donation for CSR will be OMR 400 per month.
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