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The GoGo Sdn Bhd (GSB) and its subunits must prepare budgets yearly. One of GSB subunits is Era Enterprise (EE), a functioning producer food container and famous for its Bento Box. Assume that EE prepares monthly cash budgets. Relevant data from assumed operating budgets for 2018 are as follows: January February Sales 460,000 412,000 Direct materials purchases 185,000 210,000 Direct labour 70,000 85,000 65,000 Manufacturing overhead Selling and administrative expenses 85,000 50,000 95,000 EE sells its Bento Box in shop located in Klang Valley. Collections are expected to be 75% in the month of sale and 25% in the month following sale. EE pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. Additional information: i. Sales: December 2017 was RM320,000 ii. Purchases of direct materials: December 2017 was RM175,000 i. Other receipts: January – Commission received RM2,000. February – Sale of used equipment RM4,000 iv. Other disbursement: February – Purchased equipment RM10,000 V. Repaid debt: January RM30,000. The company's cash balance on January 1, 2018 is expected to be RM50,000. The company wants to maintain a minimum cash balance of RM45,000. Required: a) Prepare schedule of collections from customer for January and February 2018. b) Prepare schedule of payments for January and February 2018. c) Prepare a cash budget for January and February 2018.

The GoGo Sdn Bhd (GSB) and its subunits must prepare budgets yearly. One of GSB subunits is Era Enterprise (EE), a functioning producer food container and famous for its Bento Box. Assume that EE prepares monthly cash budgets. Relevant data from assumed operating budgets for 2018 are as follows: January February Sales 460,000 412,000 Direct materials purchases 185,000 210,000 Direct labour 70,000 85,000 65,000 Manufacturing overhead Selling and administrative expenses 85,000 50,000 95,000 EE sells its Bento Box in shop located in Klang Valley. Collections are expected to be 75% in the month of sale and 25% in the month following sale. EE pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. Additional information: i. Sales: December 2017 was RM320,000 ii. Purchases of direct materials: December 2017 was RM175,000 i. Other receipts: January – Commission received RM2,000. February – Sale of used equipment RM4,000 iv. Other disbursement: February – Purchased equipment RM10,000 V. Repaid debt: January RM30,000. The company's cash balance on January 1, 2018 is expected to be RM50,000. The company wants to maintain a minimum cash balance of RM45,000. Required: a) Prepare schedule of collections from customer for January and February 2018. b) Prepare schedule of payments for January and February 2018. c) Prepare a cash budget for January and February 2018.

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter22: Budgeting
Section: Chapter Questions
Problem 3PB: Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co.,...
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The GoGo Sdn Bhd (GSB) and its subunits must prepare budgets yearly. One of GSB subunits is Era Enterprise (EE), a functioning producer food container and famous for its Bento Box. Assume that EE prepares monthly cash budgets. Relevant data from assumed operating budgets for 2018 are as follows: January February Sales 460,000 412,000 Direct materials purchases 185,000 210,000 Direct labour 70,000 85,000 65,000 Manufacturing overhead Selling and administrative expenses 85,000 50,000 95,000 EE sells its Bento Box in shop located in Klang Valley. Collections are expected to be 75% in the month of sale and 25% in the month following sale. EE pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. Additional information: i. Sales: December 2017 was RM320,000 ii. Purchases of direct materials: December 2017 was RM175,000 i. Other receipts: January – Commission received RM2,000. February – Sale of used equipment RM4,000 iv. Other disbursement: February – Purchased equipment RM10,000 V. Repaid debt: January RM30,000. The company's cash balance on January 1, 2018 is expected to be RM50,000. The company wants to maintain a minimum cash balance of RM45,000. Required: a) Prepare schedule of collections from customer for January and February 2018. b) Prepare schedule of payments for January and February 2018. c) Prepare a cash budget for January and February 2018.
Transcribed Image Text:The GoGo Sdn Bhd (GSB) and its subunits must prepare budgets yearly. One of GSB subunits is Era Enterprise (EE), a functioning producer food container and famous for its Bento Box. Assume that EE prepares monthly cash budgets. Relevant data from assumed operating budgets for 2018 are as follows: January February Sales 460,000 412,000 Direct materials purchases 185,000 210,000 Direct labour 70,000 85,000 65,000 Manufacturing overhead Selling and administrative expenses 85,000 50,000 95,000 EE sells its Bento Box in shop located in Klang Valley. Collections are expected to be 75% in the month of sale and 25% in the month following sale. EE pays 60% of direct materials purchases in cash in the month of purchase, and the balance due in the month following the purchase. All other items above are paid in the month incurred. Additional information: i. Sales: December 2017 was RM320,000 ii. Purchases of direct materials: December 2017 was RM175,000 i. Other receipts: January – Commission received RM2,000. February – Sale of used equipment RM4,000 iv. Other disbursement: February – Purchased equipment RM10,000 V. Repaid debt: January RM30,000. The company's cash balance on January 1, 2018 is expected to be RM50,000. The company wants to maintain a minimum cash balance of RM45,000. Required: a) Prepare schedule of collections from customer for January and February 2018. b) Prepare schedule of payments for January and February 2018. c) Prepare a cash budget for January and February 2018.
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