Please assist to construct a cash budget in detail. * Please take note that there is variable manufacturing overhead cost and do we need to include this in the cash budget? Financial information pertaining to Alya Sdn Bhd above follows:• Beginning cash balance is RM1,800,000• Sales are on credit and are collected 50 percent in the current period and the remainder in the nextperiod. Last quarter's sales were RM8,400,000. There are no bad debts.Purchases of direct materials and labor costs are paid for in the quarter acquired.• Manufacturing overhead expenses are paid in the quarter incurred.• Selling and administrative expenses are all fixed and are paid in the quarter incurred. They arebudgeted at RM340,000 per quarter, including RM90,000 of depreciation.Required:Refer to the sales budget prepared in Task 1. Construct a cash budget for Alya Sdn Bhd for the quarter ending30th September 2021. QuestionAlya Sdn Bhd. manufactures and supplies granite pots and pans with glass lids to a company in Japan. Thenew manager, Rushdi, wants to monitor the quarterly budgets for the quarter ending 30th September 2021to ensure the sales targeted can be executed as planned even with the current economic condition. Thefollowing information is available:Budgeted sales:POTS60,000 units @RM100 eachPANS40,000 units @RM125 eachBudgeted inventories:Ending25,00010,00036,000 kg32,000 kg7,000 unitsBeginningPots20,000Pans8,000Direct material (Granite)Direct material (Glass)Direct material (Handles)32,000 kg29,000 kg6,000 units+tandard variable costs:POTSPANSDirect materials:5kg @RM8.003kg@RM5.00RM40.00 4kg @RM8.0015.00 3kg@RM5.00GraniteRM32.00Glass15.00Handles1 @RM3.003.00Total materials58.0047.00Direct labour2hours@RM12.0024.00 3hours@RM16.0048.00Variable manufacturingoverhead2hours@RM1.503.00 3hours@RM1.504.50Total85.0099.50Variable manufacturing overhead cost is RM384,000, while fixed factory overhead is RM214,000 per quarter(including the non-cash expenditure of RM156,000) and is allocated on total units produced.

Budgeting is a tool which is used in the controlling process of an organisation. It also helps in…

Financial information pertaining to Alya Sdn Bhd above follows: • Beginning cash balance is RM1,800,000 • Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarter's sales were RM8,400,000. There are no bad debts. • Purchases of direct materials and labor costs are paid for in the quarter acquired. • Manufacturing overhead expenses are paid in the quarter incurred. • Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are budgeted at RM340,000 per quarter, including RM90,000 of depreciation. Required: Refer to the sales budget prepared in Task 1. Construct a cash budget for Alya Sdn Bhd for the quarter ending 30th September 2021.

Financial information pertaining to Alya Sdn Bhd above follows: • Beginning cash balance is RM1,800,000 • Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarter's sales were RM8,400,000. There are no bad debts. • Purchases of direct materials and labor costs are paid for in the quarter acquired. • Manufacturing overhead expenses are paid in the quarter incurred. • Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are budgeted at RM340,000 per quarter, including RM90,000 of depreciation. Required: Refer to the sales budget prepared in Task 1. Construct a cash budget for Alya Sdn Bhd for the quarter ending 30th September 2021.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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kar \\WHAT IS THE FIRST STEP YOU WILL TAKE TO SUCESSFULLY COMPLETE A BUDGET FOR YOURSELF ?
Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,000 tires at a variable cost of $73 per tire and total fixed costs of $57,000. The budgeted selling price was $111 per tire. Actual results in August 2020 were 2,700 tires manufactured and sold at a selling price of $113 per tire. The actual total variable costs were $218,700, and the actual total fixed costs were $53,500. Read the requirements Requirement 1. Prepare a performance report with a flexible budget and a static budget Begin with the actual results, then complete the flexible budget columns and the static budget columns. Label each variance as favorable or unfavorable. (For variances with a 10 balance, make sure to enter "0" in the appropriate field. If the variance is zero, do not select a label) Units sold Revenues Variable costs Contribution margin Fixed costs Operating income Actual Results
1. A budget is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources. a. True b. False 2. Budgets should not be used to provide managers with “pre-approval” for the execution of spending plans. a. True b. False 3. A flexible budget is not designed to change with changes in activity level. a. True b. False 4. The production budget comes before the materials purchases budget. a.True b. False 5. The starting point for the master budget is an assessment of anticipated production next year. a. False b. True
Why use a flexible budget?
Which of the following is not a benefit of participative budgeting? Multiple Choice It serves as training or development for managers. It provides information that employees know but managers do not. It reduces or eliminates the need for tracking actual cost activity. It enhances employee motivation and acceptance of goals.
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One of the advantages of a production budget is that it can help to uncover potential production issues before they occur. Question 18 options: True False
When developing a budget we focus first on sales. Why do be begin with sales? What are some of the factors we should consider when preparing the sales budget?
Two standards that are established for evaluating budget performance are the cost standard and the efficiency standard. Explain the difference between the two standards and give an example of each. Why is it important to measure the actual results against both standards?
Does the manager of a Samsung distribution center participate in long-term budgeting? Explain.
since flexible budget is more accurate in measuring performance, can company just develop flexible budget without the static budget? Why or why not?