Answered: Verstappen Motor Holdings is preparing… | bartleby

Quickbooks Online Accounting

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 3.3C

See similar textbooks

Related questions

Question

Question 3
Verstappen Motor Holdings is preparing its budget for the year ended 31 March 2022. The
following information for the last six months has been prepared:
Month
April
May
June
July
August
September
REQUIRED:
Cars Sold
20
40
25
34
45
42
Warranty claim expenses
R
12 000
15 800
12 600
14 400
16 000
20 000
Q.3.2 If Verstappen Motor Holdings is budgeting to sell 50 cars, what will the total
warranty cost be that they are likely to incur?

Expert Solution

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Blurred answer

Similar questions

Case study #3 Hussain Traders LLC is providing the following information. You are required to prepare Cash Budget for the period of 6 months from July to December 2020. All amounts in Rials. Month July August Sales Rent 120,000 6,000 4,000 140,000 7,000 5,000 September 110,000 6,000 7,000 October 130,000 4,000 3,000 November 120,000 6,000 4,000 December 150,000 8,000 5,000 Marketing Expenses Additional information: Salaries 8,000 4,000 5,000 4,000 6,000 7,000 a) Cash sales 50% and the balance in the following month b) Commission received RO 20,000 in the month of November. c) Sale of Fixed Assets in the month of December for RO 5,000 d) Purchase of Printing Machine in September RO 50,000 e) Interest payment to bank RO 40,000 in the month of October f) All other expenses are paid on the 1st of next month. g) Opening Balance for the month of July is RO 50000. Administrative Expenses 1,000 2,000 4,000 3,000 7,000 5,000
QUESTION 1You are required to prepare a cash budget for the third quarter of 2020 for STS Corporation.Month Total sales(RM)March 170,000April 100,000May 140,000June 180,000July 200,000AugustSeptemberOctober220,000195,000180,000i) The company makes 10 percent cash sales, and the balance are collected as follows; 60percent is collected one month after sales, 30 percent is collected two months after sales,and 10 percent is collected three months after sales.ii) Purchase of raw materials is 50 percent of sales and are made one month prior to sales.Payment are made equally in the two months after the purchases.iii) Wages and salaries amounting to 10 percent of the last month’s sales. The company fixedmonthly expenses are RM3,000 for rent, RM2,000 for utilities, RM10,000 for depreciation,and RM1,500 for insurance.iv) A quarterly dividend of RM50,000 will be paid at the end of each quarter.v) The company plans to pay RM70,500 in cash for a new machinery installed in August.vi) Ending cash…
Q.No. 2 Abuhatim LLC has given the following particulars. You are required to prepare a cash budget for the three months ending 31st December 2019 Months Sales Materials Wages Over heads (OMR) (OMR) (OMR) (OMR) 1900 August 20000 10200 3800 September 21000 10000 3800 2100 October 23000 9800 4000 2300 November 25000 10000 4200 2400 December 30000 10800 4500 2500 Credit terms are 1. Sales /Debtors 10% sales are on Cash , 50% of the credit sales are collected in next month and the balance in the following month 2. Creditors – materials 2 months Wages 1 month Over heads – 1 month 3. Cash balance on 1st October is expected to be Ro.8000 4. A machinery will be installed in August at a cost of RO.100000, the monthly instalment of RO.5000 is payable from October onwards 5. Dividend at 10% on preference share capital RO.300,000 will be paid on 1st December 2019 6. Advance to be received for the sale of vehicles RO.20000in December 7. Income tax tobe received in December RO.5000
QUESTION 6 The following information is applicable to Shine Wholesalers for the year 2020: Budgeted sales: ● ● ● ● ● ● ● ● July August R105 000 R132 000 R165 000 September In October 2020, sales are expected to increase by 20% relative to sales in September 2020. Cash sales amount to 20% of total sales. 55% of all credit sales are collected in the month of sale, with a discount of 10% to those debtors who pay during this time. The outstanding credit sales are collected in equal instalments over the next two months. There are no bad debts. Purchases of raw materials are expected to be sufficient to meet 60% of the total sales for the next month. The company normally settles half of its creditors in the month following the month of purchase. The remaining creditors are paid two months after the month of purchase. Wages and salaries are paid to employees at the end of the month in which they are earned. Wages and salaries are expected to be: June July August September October R22 200 R20…
NO. 3. Budgeting No.1 ANGEL Trading Company presents the actual sales for the first three months of year 2019 on its two products as follows: Total Sales 880,000 941,000 1,006,750 1,214,520 1,353,461 The business expects that the trends for the past three months will continue in June and July 2019. Product AB Product XY January February March April May 340,000 374, 000 411,400 529,200 599,250 540,000 576,000 593,350 685,320 754,211 Required: Determine the projected sales for June and July 2019 for the two products. Round the amounts to thousand pesos.
II. FILL in the Table below. SAFARRI COMPANY Sales Budget For the Year Ending December 31, 2020 SALES BUDGET Formula Forecasted unit Quarter 3 7,000 Quarter 1 Quarter 2 Quarter 4 5,500 6,000 8,000 sales X Price per unit Total Gross Sales 10 10 12 12
Question 3 The Plantd’ Company’s budgeted sales for the first quarter of 2020 are as follows: N$ January 400 000 February 320 000 March 480 000 Total 1 200 000 Credit sales are normally collected as follows: Percent (%) In the month of sale 50 The month following the sale 30 The second month following the month of the sale 20 Total…
Styles Abuhatim LLC has given the following particulars. You are required to prepare a cash budget for the three months ending 31st December 2019 Months Sales Materials Wages ( OMR) Over heads (OMR) (OMR) (OMR) August September October 20000 10200 3800 1900 21000 10000 3800 2100 23000 9800 4000 2300 November 25000 10000 4200 2400 December 30000 10800 4500 2500 Credit terms are 1.. Sales /Debtors 10% sales are on Cash, 50% of the credit sales are collected in next month and the balance in the following month 2. Creditors- materials 2 months Wages 1 month -1 month Overheads 3. Cash balance on 1st October is expected to be Ro.8000 4. A machinery will be installed in August at a cost of RO.100000, the monthly instalment of RO.5000 is payable from October onwards 5. Dividend at 10% on preference share capital RO.300,000 will be paid on 1* December 2019 6. Advance to be received for the sale of vehicles RO.20000in December 7. Income tax to be received in December RO.5000
BUSS 104-Principles of ivianagemenL AtCounting 20202 Dashboard / My courses / BUSS 104-7-20202 / Final exam / Final exam Qui Barka Company is in the period of budgeting for 2022. The Sales manager forecasted the number of units to be sold as 30000 units and determined the selling price as 20 OMR per unit. The management revised these estimates with a 15 % decrease in selling price and with a 25 % increase in the number of units sold. Question 24 1 answered 10 Marked out of According these estimates, which of the following is revised Sales (OMR)? 19 P Flag question Select one O a. 692500 Finisl O b. 850000 Time O c. 700000 O d. 637500 Next page Previous page Jump to. Grades
BUS 203: INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING PROJECT: CASH BUDGETING ASSOCIATE DEGREE YEAR 2: SEMESTER 1 (2020/21)Ronstadt Limited’s budget for the four months from January to April includes the following data:1. MonthSalesMaterialsWagesOverheads $000$000$000$000January615115.030360February636120.033390March690135.036420April684130.040425 2. One-third of sales revenue is received one month after sale and the remainder is received two months after sale. The sales in the previous two months were: November $600 000; December $540 000.3. One-quarter of purchases of materials are paid for in the month of purchase. The remainder are paid for two months later. Purchases in the previous two months were: November $108 000; December $106 000.4. Two-thirds of the wages are paid in the month in which they are earned, and the balance is paid in the following month. The wages for the previous December amounted to $30 000.5. One-half of the overhead expenditure is paid in the month in…
Question 1 From the following information prepare a monthly cash budget for the three months ending 31st Dec.2020 Sales Materials Wages Production Admin. Selling, etc Month (RM) (RM) (RM) (RM) (RM) June 6,000 3,600 1,300 450 320 July 6,500 4,000 1,500 450 320 Aug. 7,000 4,800 1,500 500 350 Sep. 7,500 4,500 1,500 600 350 Oct. 8,000 4,600 1,600 600 400 Nov. 8,500 5,000 1,800 700 400 Dec. 9,000 5,200 2,000 700 450 Credit terms Sales 3 months to debtors. 10% of sales are on cash. On an average, 50% of credit sales are paid on the due dates while the other 50% are paid in the month following Creditors for material – 2 months. Lag in payment Wages. 1/4 month, overheads 1/2 month. Other information Plant and Machinery to be installed in Aug. at a cost of RM30,000. It will be paid for by monthly installments of RM1,000 each from 1st Oct.; Preference share dividend @ 6% on RM100,000 are to be paid on 1st Dec. Calls on 500 equity shares @ RM2 per share expected on 1st November; Dividends from…
Good night please answer d,e and question 2 Makers Ltd. manufactures and sells two products, Abba and Baba. In July 2018 Makers’Budget Department gathered the following data in order to prepare the individual budgets inthe master budget for 2019: 2019 Projected Sales:Product Unit PriceAbba 80,000 $ 190Baba 60,000 $ 270 2019 Inventories in Units: Expected Target:Product January 1, 2019 December 31, 2019Abba 22,000 26,000Baba 9,000 10,000 To produce 1 unit of Abba and Baba, the following direct materials are used:Direct Material Unit Abba BabaA Pounds 5 6B Pounds 3 4C…

SEE MORE QUESTIONS

Recommended textbooks for you

Quickbooks Online Accounting

Quickbooks Online Accounting

Accounting

ISBN:

9780357391693

Author:

Owen

Publisher:

Cengage

Quickbooks Online Accounting

Quickbooks Online Accounting

Accounting

ISBN:

9780357391693

Author:

Owen

Publisher:

Cengage

SEE MORE TEXTBOOKS