# What are the budgeted cash collections for January?

What are the budgeted cash collections for January?

Question 103. What would be the production budget in units for X Ltd.? (A) 1,06,000 units (B) 1,04,000 units (C) 98,000 units (D) 1,10,000 units Answer: (B) 1,04,000 units Sales Units + Closing Stock – Opening Stock = Unit Produced 1,0, 000 + 12,000 – 8,000 = 1,04,000 units

What would be the direct materials purchases budget in kg? (A) 4,18,000 kg (B) 4,00,000 kg (C) 4,14,000 kg (D) 4,16,000 kg Answer: (A) 4,18,000 kg Material consumed = 1,04,000 ? 4 = 4,16,000 Material Purchases=Material consumed + Closing stock of raw material – Opening stock of raw material = 4,16,000 + 6,000 – 4,000 = 4,18,000

Question 105. What would be the direct labour budget? (A) ? 4,68,000 (B) ? 4,50,000 (C) ? 9,36,000 (D) ? 1,04,000 Answer: (A) ? 4,68,000 1,04,000 ? 0.5 ? 9 = 4,68,000

Question 106. If the beginning balance of cash is ? 5,000 and the desired closing cash balance is ? 10,000, with the only other cash-related items being revenue, direct materials purchases, and cost of direct labour, what would be the surplus or deficit of cash at the end of the period? (A) Deficit of ? 8,000 (B) Surplus of ? 18,000 (C) Deficit of ? 18,000 (D) No surplus or deficit Answer: (C) Deficit of ? 18,000 5,000 + 15,00,000 (sales) -10,45,000 (material purchase) – 4,68,000 (labour) -10,000 (desired cash balance) = – 18,000

Question 107. R Ltd. is budgeting production of 1,00,000 units of Product R for the month of May this year. Production of one unit of Product R requires three units of Material B. For Material B, the actual inventory units at May 1 were 22,000 units and budgeted inventory units at May 31 are 24,000. How many units of Material B is R Ltd. planning to purchase during May? (A) 3,28,000 (B) 3,02,000 (C) 2,98,000 (D) 2,72,000 Answer: (B) 3,02,000 Material consumed = 1,00,000 ? 3 = 3,00,000 Material Purchases=Material consumed + Closing stock of raw material – Opening stock of raw material = 3,00,000 + 24,000 – 22,000 = 3,02,000

## Question 104

Question 108. XYZ has forecast sales for the next three months as follows: January, 10,000 units; February, 15,000 units; and March, 20,000 units. Inventory as of January 1 is expected to be 2,000 units. Ending inventories should equal 25% of the coming month’s sales needs. How many units should be produced in February? (A) 13,750 units (B) 15,000 units (C) 16,250 units (D) 18,000 units Answer: (C) 16,250 units

Question 109. A Ltd. has observed its receivable collection pattern to be as follows: 40% in the month of the sale, 45% in the month following the sale, and 13% in the second month following the sale. Sales for the last 3 months of the year were as follows: October ? 3,00,000; November, ? 4,50,000 and December, ? 6,25,000. Sales for January are budgeted to be ? 3,75,000. (A) ? 3,75,000 (B) ? 4,89,750 (C) ? 4,95,750 (D) ? 6,25,000 Answer: (B) ? 4,89,750

## Question 110

S Ltd. has forecast sales as follows: July 30,000 units; August 35,000 units; and September 40,000 units. Finished goods inventory as https://rapidloan.net/payday-loans-nj/ of July 1 is forecast to be 10,000 units. Finished goods inventory of 20% of the following month’s sales needs is desired. Each finished unit requires 5 kg of raw material. The raw materials inventory level on July 1 was 2,02,500 kg and the expected raw materials inventory level on July 31 will be 2,70,000 kg. How many kg of raw material should be purchased in July? (A) 27,000 kg (B) 40,500 kg (C) 1,35,000 kg (D) 2,02,500 kg Answer: (D) 2,02,500 kg