Page 312 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 13

What is the amount budgeted to be received from credit sales in September?

A $47,280

B $47,680

C $48,850

D $49,480

Test your understanding 5

A small manufacturing company is to commence operations on 1 July. The
following estimates have been prepared:

July August September

Production (units) 40 50 50

It is planned to have raw material inventories of $10,000 at the end of July,
and to maintain inventories at that level thereafter. There is no opening
inventory.

Costs and other information:

Per unit
$

Material cost 280

Labour cost 160

Variable overheads 40

Fixed overheads are expected to be $5,000 per month, including $1,000
depreciation.

Labour is paid in the month incurred, and all other expenditures the following
month.

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