Aggrava Limited is currently preparing budgets for September to December. Its estimated sales figures in units are as​ follows:   September October November December Sales (units) 3,807 11,719 11,047 15,522 ​   Inventories at 31 August totalled 16,016 ​units, and inventories are to be kept at a constant level for all months except​ December, when opening inventories on 1 December are to be increased to 24,764. Inventories will revert to the normal level on 31 December. Inventories will cost​ £2 per unit throughout the​ period, and suppliers allow Aggrava Ltd to pay in the month following an order. Other relevant information is that 5,843 units were bought in August.   Requirement​ 1: Prepare Aggrava ​Ltd's inventories budget​ (in units) for September to December. Requirement​ 2: Prepare the information relevant to inventories purchases that would appear in the cash budget for the period.   Requirement​ 1: Aggrava ​Ltd's inventories budget​ (in units) is as​ follows: ​(Fill in the relevant cells with its corresponding figures. Negative figures should be entered in​ brackets.)     September October November December Opening inventories (A)         Sales forecast (B)         A - B = (C)         Inventories purchase* (E - C)         Closing inventories (E)           ​* same as​ 'sales forecast' for each month except November and​ December, when inventories increase and then revert to normal.   Requirement​ 2: Relevant information relating to inventories purchases for the cash budget is as​ follows: ​(Fill in the relevant cells with its corresponding​ figures.)     August September October November December Inventories purchased (units) (A)           Cost per unit (£) (B) 2 2 2 2 2 Cost of inventories bought (£) [A*B = (C)]           Cash outflow (£)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Aggrava
Limited is currently preparing budgets for September to December. Its estimated sales figures in units are as​ follows:
 
September
October
November
December
Sales (units)
3,807
11,719
11,047
15,522
 
Inventories at 31 August totalled
16,016
​units, and inventories are to be kept at a constant level for all months except​ December, when opening inventories on 1 December are to be increased to
24,764.
Inventories will revert to the normal level on 31 December.
Inventories will cost​ £2 per unit throughout the​ period, and suppliers allow
Aggrava
Ltd to pay in the month following an order. Other relevant information is that
5,843
units were bought in August.
 
Requirement​ 1: Prepare
Aggrava
​Ltd's inventories budget​ (in units) for September to December.
Requirement​ 2: Prepare the information relevant to inventories purchases that would appear in the cash budget for the period.
 
Requirement​ 1:
Aggrava
​Ltd's inventories budget​ (in units) is as​ follows:
​(Fill in the relevant cells with its corresponding figures. Negative figures should be entered in​ brackets.)
 
 
September
October
November
December
Opening inventories (A)
 
 
 
 
Sales forecast (B)
 
 
 
 
A - B = (C)
 
 
 
 
Inventories purchase* (E - C)
 
 
 
 
Closing inventories (E)
 
 
 
 
 
​* same as​ 'sales forecast' for each month except November and​ December, when inventories increase and then revert to normal.
 
Requirement​ 2: Relevant information relating to inventories purchases for the cash budget is as​ follows:
​(Fill in the relevant cells with its corresponding​ figures.)
 
 
August
September
October
November
December
Inventories purchased (units) (A)
 
 
 
 
 
Cost per unit (£) (B)
2
2
2
2
2
Cost of inventories bought (£) [A*B = (C)]
 
 
 
 
 
Cash outflow (£)
 
 
 
 
 
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