QUESTION THREE Easy Spread Ltd is a food processing company whose main product is margarine. The CEO, Grant, is contemp...
QUESTION THREE Easy Spread Ltd is a food processing company whose main product is margarine. The CEO, Grant, is contemplating expanding the business by selling its margarine products into the growing Indonesian market. He asks you, as the company’s accountant, whether financial planning structures and processes within the company are set up to deal with this expansion of operations and greater financial complexity associated with export trading. You know that the company has developed very detailed processes for preparing its...
QUESTION THREE Easy Spread Ltd is a food processing company whose main product is margarine. The CEO, Grant, is contemplating expanding the business by selling its margarine products into the growing Indonesian market. He asks you, as the company’s accountant, whether financial planning structures and processes within the company are set up to deal with this expansion of operations and greater financial complexity associated with export trading. You know that the company has developed very detailed processes for preparing its...
Question 1 Ceylon Ltd produces and sells product X. The company is in the process of preparing its budgets for the first 6 months of 2020, and it expects sales units in January, February and March 2020 to be 12,000; 15,000 and 18,000 units respectively. Thereafter, it is expected that sales will increase at a rate of 20% per month until June 2020. The following information regarding Product X is provided in the table below. It is expected that selling...
QUESTION THREE Cartlidge Ltd manufactures and sells plastic kitchen containers through associated retail outlets throughout Australia. To compete more effectively it has recently introduced a budgetary control system to assist with planning and control of operations. Detailed below are the budgeted and actual performance figures for their most popular plastic container sold for the month of December 2018, BUDGET (static) ACTUAL Output (production and sales) 3000 Units 3,300 Units $ $ Sales $45,000 $47,850 (3,000 unit @ $15) (3,300 units...
Question 4 (22 marks) Glamping Products Pty Ltd is a supplier of modern camping beds to the retail sector They are currently designing their first forward budgeting reports, and have asked for your assistance in preparing some sample budgets for their internal management use. They have provided you with the following information: Estimated sales units: Month (2019) June July Sales units 1,000 900 Month (2019) August September Sales units 1,000 1,000 The selling price per unit is $80, which will...
Aztec Company sells its product for $190 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) 8,000 $1,520,000 May (actual) 2,600 494,000 June (budgeted) 7,500 1,425,000 July (budgeted) 8,000 1,520,000 August (budgeted) 4,000 760,000 All sales are on credit. Recent experience shows that 28% of credit sales is collected in the month of the sale, 42% in the month after the sale, 27% in the second...
Aztec Company sells its product for $190 per unit its actual and budgeted sales to low. Units Dollars $950,000 Aprill (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) 5.000 2,000 7,500 6,000 4,300 380,000 1.425,000 1.140,000 817,000 All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the sale, 50% in the month after the sale, 29% in the second month after the sale, and 1% proves to be uncollectible....
Loon Ltd is a small regional company specialising in the production of athletic footwear, which it sells to a variety of retail outlets in the South West of the country. The company has recently appointed a new Credit Manager to look into the firm’s cash flow, as it has been affected by both the credit crunch and its customers’ payment pattern. The Credit Manager has suggested the company changes the credit terms offered to its customers. Information on the existing,...
Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. Units Dollars April (actual) 5,000 $ 800,000 May (actual) 2,000 320,000 June (budgeted) 5,500 880,000 July (budgeted) 4,500 879,000 August (budgeted) 4,000 640,000 All sales are on credit. Recent experience shows that 26% of credit sales is collected in the month of the sale, 44% in the month after the sale, 26% in the second month after the sale, and 4% proves to be uncollectible....
Artec Company sells its product for $190 per unit. Its actual and budgeted sales follow. April (actual) May (actuan June (budgeted) July (budgeted) August (budgeted) Units 9,500 2,800 8,000 7,500 4,100 Dollars $1,805,000 532,000 1,520,000 1,425,000 779,000 All sales are on credit Recent experience shows that 24% of credit sales is collected in the month of the sale, 46% in the month after the sale, 29% in the second month after the sale, and 1% proves to be uncollectible The...