4. Charlie McTavish is a sole trader. He provides you with the following information.
The Cash and Cash Equivalents (Bank) balance of Charlie is expected to be £30,000 at
31 August Year 2.
1. Sales in units are estimated to be as follows:
Aug Sept Oct
2,300 1,500 2,000
2. The selling price per unit will be £60 but Cash Sales will receive a discount of
10%.
3. Credit customers pay one month after sale.
4. Credit sales account for 60% of total sales each month.
5. Estimated production each month will be:
Aug Sept Oct
2,500 1,100 1,500
6. Raw material costs are £16 per unit and are paid for one month after
production.
7. Wages are £12 per unit and are paid in the same month as production.
8. Charlie buys a new van costing £20,000 and pays a 20% deposit in September.
On Page 11 of your Workbook, prepare Charlie’s Cash Budget for September.
5. Harry Davidson purchases raw materials which are then manufactured into finished
products and sold to customers. The following information relates to the issue and
purchase of materials for November.
DATE PURCHASES/ISSUES
01 Nov Purchased 500 kg costing £10·25
05 Nov Issued 200 kg to Job 10
07 Nov Purchased 750 kg costing £10·30
12 Nov Issued 350 kg to Job 11
16 Nov Issued 440 kg to Job 12
Complete the Inventory (Stock) Record Card for the month of November, using
Last-In-First-Out (LIFO) on the Worksheet provided on Page 12 of your Workbook.
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