The sales budget for Merita Medallion Company shows budgeted sales (in medallions) for December and the first four months of next year: Medallions December 100 000 January 40 000 February 90 000 March 150 000 April 50 000 Required: Prepare a budget for the number of medallions Merita needs to purchase in the first three months of next year for each of the following two independent situations: a The business’s policy is to have inventory on hand at the end of each month equal to 15 per cent of the following month’s sales requirement

Budget Master Ltd is in the process of preparing budgets for the period October toDecember 2018. Thefollowing information has been provided to assist in the budgeting process:(1) Budgeted monthly sales revenue is as follows:GHSOctober 2018 40,000November 2018 70,000December 2018 50,000January 2019 45,000(2) Sales are 20% cash and 80% credit. Credit sales are collected over a three month period: 15%in the month of sale, 70% in the month following sale and 15% in the second month followingsale. Bad debts of 5% are anticipated on all credit sales.(3) Total sales revenue in August 2018 amounts to GHS30,000 and September 2018’s total salesrevenue amounts to GHS36,000.(4) Cost of sales is expected to amount to 60% of sales revenue each month.(5) The business maintains its closing inventory levels at 75% of the following month’s cost ofsales. Inventory at the beginning of October 2018 is expected to amount to GHS18,000.(6) 50% of inventory purchased is paid in the month of purchase. The remaining 50% is paid forin the month following purchase. As at 30 September 2018, amount owed for purchases areGHS11,700.(7) A grant of GHS20,000 is expected to be received in mid-October 2018.(8) A second hand van which cost GHS8,000 three years ago is expected to be sold in December2018 for GHS3,000. At this time the expected net book value of the van is GHS1,800.(9) Equipment costing GHS4,500 will be purchased and paid for in November 2018. Theequipment will be depreciated on a straight line basis over three years.(10) Operating expenses are paid as incurred. These have been estimated as follows:GHSOctober 2018 12,800November 2018 18,900December 2018 14,600The above figures include depreciation on existing assets of GHS2,000 per month.(11) The cash balance on 1 October 2018 is expected to amount to GHS8,000Required:i) Calculate the purchases figure for each month from October 2018 to December 2018.

Fill in the Blank QuestionFill in the blank question.A company's sales budget indicates the following sales: January: 25,000; February: 30,000; March: 35,000. Beginning inventory is 12,000 units and the company desires ending inventory of 45% of the next month's sales. Units to be produced in January will be .

i) Below is a partial listing of the adjusted account balances of Lama Storeat year-end on December 31, 2018.Accounts Receivable 19,000Cost of Goods Sold 245,000Selling Expenses (includes depreciation) 35,000Interest Expense 1,000Accumulated Depreciation—Buildings 10,000Sales Discounts 22,000Inventory 45,000Administrative Expenses (includes depreciation) 30,000Sales Revenue 350,000Accounts Payable 14,000Interest Revenue 800Cuea/ACD/EXM/JANUARY – APRIL 2019/ACCOUNTING AND FINANCE Page 3ISO 9001:2008 Certified by the Kenya Bureau of StandardsRequiredSelect the appropriate account balance and prepare an income statement forLama Store for the year ended December 31, 2018

Mzwakhe Pty Ltd has provided you with the following information to assist in the budget preparation. The marketing department has estimated monthly sales as follows:MonthUnitsJuly6 000August7 000September5 000October4 000November3 000 The selling price per unit is R150 per unit.   All sales are on credit.  Based on the past experience, credit sales are expected to be collected in the following pattern:         40% in the month of sale.         50% in the month following sale.         10% uncollectable.The beginning of accounts receivable balance (excluding uncollectable amounts) on 1 July will be R130 000.  The company maintains finished goods inventories equal 10% of the following month’s budgeted sales. The inventory of finished goods on 1 July will be 600 units.  Each unit requires two (2) kilograms of Material B on hand at the end of each month equal to 20% of the following month’s production needs.  The inventory of Material B on hand in July will be 2 400 kilograms.  Material A costs R10 per kilogram. Each unit requires 1,5 hours at R50 per hour.Required:Filli in the missing figures by choosing the correct answer from the options provided:1.  Production budget AugustSeptemberBudgeted sales in units7 0005 000Add: Blank 1Blank 2Blank 3Total needs  Less: Blank 4Blank 5Blank 6Units to be producedBlank 7Blank 82.      Collection from customers JulyAugustAccounts receivableBlank 9 July salesBlank 10Blank 11August sales Blank 12Total cash collectionsBlank 13Blank 143. Material purchases budget for AugustProduction requiredBlank 15X 2 kgBlank 16Total needsBlank 17Add: closing inventoryBlank 18Materials neededBlank 19Less: opening inventoryBlank 20Total material purchasesBlank 21Cost per kgBlank 22Total material costBlank 23

Budgeted sales for the first quarter for Cullison Company, a retailer, are as follows:   Budgeted Sales (units) January150,000 February200,000 March220,000 Cullison started the year with an inventory of 15,000 units.  The company likes to maintain an inventory equal to 10% of next month’s budgeted sales. Budgeted purchases in units for February would be:Question 10Select one:a.200,000b.202,000c.220,000d.222,000