Page 153 - DCOM302_MANAGEMENT_ACCOUNTING

Management Accounting

Notes
South Alpha 24,000 10
Beta 30,000 5
Actual sales for the period were
Product North South
Alpha 28,000 units @`10 each 25,000 units @ ` 10 each
Beta 18,000 units @ `5 each 33,000 units @ ` 5 each
On the basis of assessments of the salesmen the following are the observations of sales
division for the year ending 31st December 2010:
North Alpha budgeted increase of 40% on 2009 budget
Beta budgeted increase of 10% on 2009 budget
South Alpha budgeted increase of 12% on 2009 budget
Beta budgeted increase of 15% on 2009 budget

It was further decided that because of the increased sales campaign in North an additional
sales of 5,000 units of product will result.
Prepare the sales budget for 2010 (a) zonewise (b) productwise.
4. From the following information prepare a cash budget for the months of June and July.

Month Credit sales Credit purchase Manufacturing Selling overheads
(`) (`) overheads (`) (`)
April 80,000 60,000 2,000 3,000
May 84,000 64,000 2,400 2,800
June 90,000 66,000 2,600 2,800
July 84,000 64,000 2,000 2,600

Additional Information:
(a) Advance tax of ` 4,000 payable in June and in December 2008.
(b) Credit period allowed to debtors is two months.
(c) Credit period allowed by the vendors or suppliers.
(d) Delay in the payment of other expenses one month.
(e) Opening balance of cash on 1st June is estimated as ` 20,000.

5. The expenses for budgeted production of 10,000 units in a factory are furnished below:
Particulars Per unit
Material 70
Labour 25
Variable overheads 20
Fixed overheads (1,00,000) 10
Variable expenses (Direct) 5
Selling expenses (10% fi xed) 13
Distribution expenses (20% fi xed) 7
Administration expenses (`50,000) 5
Total cost per unit 155

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