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  • A) Finished Inventories Budget Showing Just Physical Quantities

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    The document contains budgets for finished inventories, raw materials inventories, trade payables, trade receivables, and cash for Daniel Chu Ltd from April to September. The finished inventories budget shows opening and closing quantities. The raw materials budget includes physical quantities and financial values of opening stock, purchases, and closing stock. The trade payables budget tracks opening balances, purchases, and payments. The trade receivables budget tracks opening balances, sales, and cash receipts. The cash budget calculates opening balances, receipts from sales and share issues, and payments for materials, labor, overheads and assets to determine the ending cash balance each month.

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    Finance

    Original Title

    Finance Sol 7

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    The document contains budgets for finished inventories, raw materials inventories, trade payables, trade receivables, and cash for Daniel Chu Ltd from April to September. The finished inventories budget shows opening and closing quantities. The raw materials budget includes physical quantities and financial values of opening stock, purchases, and closing stock. The trade payables budget tracks opening balances, purchases, and payments. The trade receivables budget tracks opening balances, sales, and cash receipts. The cash budget calculates opening balances, receipts from sales and share issues, and payments for materials, labor, overheads and assets to determine the ending cash balance each month.

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    © All Rights Reserved
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    15 views3 pages

    A) Finished Inventories Budget Showing Just Physical Quantities

    Uploaded by

    doria
    The document contains budgets for finished inventories, raw materials inventories, trade payables, trade receivables, and cash for Daniel Chu Ltd from April to September. The finished inventories budget shows opening and closing quantities. The raw materials budget includes physical quantities and financial values of opening stock, purchases, and closing stock. The trade payables budget tracks opening balances, purchases, and payments. The trade receivables budget tracks opening balances, sales, and cash receipts. The cash budget calculates opening balances, receipts from sales and share issues, and payments for materials, labor, overheads and assets to determine the ending cash balance each month.

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    of 3

    Exercise 6.

    6: Daniel Chu Ltd


    sales units
    May 500
    June 600
    July 700
    August 800
    Sept. 900
    Oct. 900
    Nov. 900
    Dec. 800
    Jan. 700

    a) finished inventories budget showing just physical quantities

      April May June July August September


    Opening balance 500 600 700 800 900
    Inventories man. 500 600 700 800 900 900
    Less inv. Used -500 -600 -700 -800 -900
    ENDING BALANCE 500 600 700 800 900 900

    b) A raw materials inventories budget showing both physical and financial values

    (in units) April May June July August September


    Opening balance 600 700 800 900 900
    Add purchases 1100 700 800 900 900 900
    Less production 500 600 700 800 900 900
    ENDING BALANCE 500 700 800 900 900 900
    ( in £) April May June July August September
    Opening balance 24000 28000 32000 36000 36000
    Add purchases 44000 28000 32000 36000 36000 36000
    Less invent. Used 20000 24000 28000 32000 36000 36000
    ENDING BALANCE 24000 28000 32000 36000 36000 36000

    c) A trade payable budget


      April May June July August September
    Opening balance - 44000 28000 32000 36000 36000
    Add purchases 44000 28000 32000 36000 36000 36000
    Cash payment - 44000 28000 32000 36000 36000
    ENDING BALANCE 44000 28000 32000 36000 36000 36000

    d) A trade receivable
    budget
      April May June July August Septemeber
    Opening balance - - 50000 60000 70000 80000
    Add sales revenue - 50000 60000 70000 80000 90000
    Less cash recepits - - 50000 60000 70000 80000
    ENDING BALANCE - 50000 60000 70000 80000 90000

    e) A cash budget
      April May June July August Septemeber
    Opening balance - -13000 -70000 -89000 -104000 -115000
    Add share issue 300000 - - - - -
    Collection from Rec. - - 50000 60000 70000 80000
    TOTAL RECEPITS (A) 300000 13000 -20000 -29000 -34000 -35000
    Less payments  
    Trade Payable Paym. 44000 28000 32000 36000 36000
    Direct labour 10000 12000 14000 16000 18000 18000
    Production Overheads (20-3) 17000 17000 17000 17000 17000 17000
    Non-prod. Overheads (11-1) 10000 10000 10000 10000 10000 10000
    Purchase of Assets 250000  
    TOTAL PAYMENTS (B) 287000 83000 69000 75000 81000 81000
    ENDING BALANCE (A-B) 13000 -70000 -89000 -104000 -115000 -116000

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