Expected Cash Collection Budget :

Month
April
Particular
Expected Sales 400,000
Februrary Sales
20 % of Sales Of February 50,000
March Sales
35 % of Sales of March 105,000
20 % of Sales Of March -
April Sales
40 % of Sales in April 160,000
35 % of Sales of April -
20 % of Sales of April -
May Sales
40 % of Sales in May -
35 % of Sales of May -
June Sales
40 % of Sales in June -
Total Collection 315,000

Expected Cash Disbursement Budget Material :

Month
April
Particular
Expected Purchases 75,000
March Purchases
50 % of Purchases of March 30,000
April Purchases
50 % of Purchase in April 37,500
50 % of Purchase of April -
May Purchases
50 % of Purchase in May -
50 % of Purchase of May -
June Sales
50 % of Purchase in May -
Total Disbursement 67,500

Manufacturing Overhead Budget :

Month
April
Particular
Expected Manufacturing Overhead 86,000
Less : Depriciation (Non-Cash Expenses) (30,000)
Total Manufacturing Overheads 56,000

Selling And Administrative Budget :

Month
April
 April
Particular
Expected Selling And Administrative 90,000
Less : Depriciation (Non-Cash Expenses) (20,000)
Total Manufacturing Overheads 70,000

Cash Budget
Month
April
Particular
Cash in Hand Opening 48,500
Add: Cash Collections 315,000
Total Cash Available 363,500
Less: Cash Disbursements (Material) (67,500)
Less: Cash Disbursements (Direct Labour) (75,000)
Less: Cash Disbursements (Manufacturing Overhead) (56,000)
Less: Cash Disbursements (Selling And Adminisstrative) (70,000)
Less : Dividends (45,000)
Less : Purchase Of Machinery (100,000)
Total Disbursemnets (413,500)
Excess / (Deficiency) of Cash Available Over Disbursements (50,000)
Financing:
Borrowing 90,000
Loan Repayment -
Interest @ 14% -
Total Financing 90,000
Cash In Hand Ending 40,000
dget :
Uncollectiable
May June Quarter
Month Rate
600,000 500,000 1,500,000 Februrary Sales 5%
March Sales 5%
- - 50,000 April Sales 5%
May Sales 5%
- - 105,000 June Sales 5%
60,000 - 60,000
Account Recievable
- - 160,000 Month Amount
140,000 - 140,000 May Sales 150,000
- 80,000 80,000 June Sales 300,000

240,000 - 240,000
- 210,000 210,000

- 200,000 200,000
440,000 490,000 1,245,000

et Material :

May June Quarter

90,000 60,000 225,000

- - 30,000

- - 37,500 Account Payable

37,500 - 37,500 Month Amount
June Purchases 30,000
45,000 - 45,000
- 45,000 45,000

- 30,000 30,000
82,500 75,000 225,000

dget :

May June Quarter

106,000 80,000 272,000

(30,000) (30,000) (90,000) Depriciation Expense
76,000 50,000 182,000 Month
April
Particular
udget : Manufacturing Overhead 30,000
Selling & Adminitrative 20,000
May June Quarter
 May June Quarter
Total 50,000
100,000 80,000 270,000
(20,000) (20,000) (60,000)
80,000 60,000 210,000

May June Quarter

40,000 64,400 48,500

440,000 490,000 1,245,000
480,000 554,400 1,293,500
(82,500) (75,000) (225,000)
(85,000) (105,000) (265,000)
(76,000) (50,000) (182,000)
(80,000) (60,000) (210,000)
- - (45,000)
- (200,000) (300,000)
(323,500) (490,000) (1,227,000)
156,500 64,400 66,500

- - 90,000
(90,000) - (90,000)
(2,100) - (2,100)
(92,100) - (2,100)
64,400 64,400 64,400
e
Amount
12500
15000
20000
30000
25000

ion Expense

May June Quarter

30,000 30,000 ###

20,000 20,000 ###
### ### ###
a) FIFA METHOD
Quantity Schedule :
Units Account For : Amount
Work In Process Opening (Units) 60,000
Units Received From Dept A 360,000
Units Account For 420,000

Units Accounted For : Amount

Units Transferred To Fininshed Goods 375,000
Work In Process Closing (Units) 45,000
Units Accounted For 420,000

Equivalent Production :
Particular Material Labor
Units Completed & Transferred 375,000 375,000
Less: Work In Process Opening (Units) (60,000) (60,000)
Units Started And Completed 315,000 315,000
Add: Work In Process Opening (Units)
Labor (60000 * 20%) - 12,000
Factory Overhead (60000 * 40%) - -
Add: Work In Process Closing (Units) - -
Material (45000 * 90%) 40,500 -
Labor (45000 * 50%) - 22,500
Factory Overhead (45000 * 40%) - -
Equivalent Production : 355,500 349,500

Cost To Charge To :
Particular Cost
Work In Process Opening (Units) 60000 724,850
Units Transferred From Dept A 360000 2,646,000
Cost Added By Department B
Direct Material 800,000
Direct Labor 700,000
Factory Overhead Applied 400,000
1,900,000
Total Cost Charged To 5,270,850

Cost Accounted For :

Particular
Transferred To Next Department
From Beginning Inventory
Inventory Cost 724,850
Direct Labor (60000 * 2.003 * 20%) 24,034
Factory Overhead (60000 * 1.120 * 40%) 26,891 775,775
 From Current Production:
Unit Started & Completed (315,000 * 12.724) 4,007,953
Total Cost of Units Transferred to Finished Goods 4,783,728
Cost From Preceeding Deptt (45000 * 7.350) 330,750
Direct Material (45000 * 2.250 * 90%) 91,139
Direct Labor (45000 * 2.030 * 50% ) 45,064
Factory Overhead (45000 * 1.120* 40%) 20,168
Total Cost of Work In Process - Ending 487,122
Total Cost Accounted For 5,270,850

General Enteries
S.No Particular P.R Debit (Rs) Credit (Rs)
1 Work In Process (Dept B) 1,900,000
Direct Material 800,000
Payroll 700,000
Factory Overhead- Applied 400,000

2 Finished Goods 4,783,728

Work In Process (Dept B) ###

b) AVERAGE METHOD
Quantity Schedule :
Units Account For : Amount
Work In Process Opening (Units) 60,000
Units Received From Dept A 360,000
Units Account For 420,000

Units Accounted For : Amount

Units Transferred To Fininshed Goods 375,000
Work In Process Closing (Units) 45,000
Units Accounted For 420,000

Equivalent Production :
Particular Material Labor
Units Completed & Transferred 375,000 375,000
Add: Work In Process Closing (Units)
Material (45000 * 90%) 40,500 -
Labor (45000 * 50%) - 22,500
Factory Overhead (45000 * 40%) - -
Equivalent Production : 415,500 397,500

Cost To Charge To :
Particular Cost
Work In Process Opening (Units) 60000 399,000
 Units Transferred From Dept A 360000 2,646,000
Cost Added By Department B 420,000 3,045,000
Direct Material
Work In Process Opening 114,100
Added During The Period 800,000
Total 914,100
Direct Labor
Work In Process Opening 114,875
Added During The Period 700,000
Total 814,875
Factory Overhead Applied
Work In Process Opening 96,875
Added During The Period 400,000
Total 496,875

Total Cost Charged To 5,270,850

Cost Accounted For :

Particular
Transferred To Next Department (375,000 * 12.764) 4,786,617
Work In Process - Ending
Cost From Preceeding Deptt (45000 * 7.250) 326,250
Direct Material (45000 * 2.200 * 90%) 89,100
Direct Labor (45000 * 2.050 * 50% ) 46,125
Factory Overhead (45000 * 1.264 * 40%) 22,758
Total Cost of Work In Process - Ending 484,233
Total Cost Accounted For 5,270,850

General Enteries
S.No Particular P.R Debit (Rs) Credit (Rs)
1 Work In Process (Dept B) 1,900,000
Direct Material 800,000
Payroll 700,000
Factory Overhead- Applied 400,000

2 Finished Goods 4,786,617

Work In Process (Dept B) ###
Factory Overhead
375,000
(60,000)
315,000

-
24,000
-
-
-
18,000
357,000

Production
Unit Cost
Units

360,000 7.350

355,500 2.250
349,500 2.003
357,000 1.120

12.724
Factory Overhead
375,000

-
-
18,000
393,000

Production
Unit Cost
Units
420,000 7.250

415,500 2.200

397,500 2.050

393,000 1.264

12.764