COST ACCOUNTING (PMA 1053)

NORYATI ABDUL MAJID (PTM 120700623)NORSYAZA EDMIZA NORASLAM MANO

(PTM 120700453)NUR FIQAH

Ashton CompanySchedule of expected cash collections

I) 400,000 x 18% = 72,000II) 525,000 x 60% = 315,000III) 600,000 x 20% = 120,000

December (RM) Total (RM)

Cash Sales 83,000 83,000

October Sales (I) 72,000 72,000

November Sales (II) 315,000 315,000

December Sales (III) 120,000 120,000

Total Cash Collections 590,000 590,000

December Total (RM)

Account Payable 161,000 161,000

DecemberPurchase

280,000 x 30% 84,000

84,000

Total 245,000 245,000

Ashton Company Schedule of expected cash disbursement

(a) The cash balance on December 1st is RM 40,000

(b) The total cash collections of the company (from schedule of cash collections): December RM590,000

(c) Direct materials purchased (from schedule of cash payments): December RM245,000

(d) Selling and administration expenses: RM 430,000

(e) A new web server for the Marketing department costing: RM 76,000 and Dividends totalling RM 9,000 will be paid during the month.

(f) The company maintains a minimum cash balance of RM 20,000.

Preparation of Cash Budget

December Total (RM)

Cash balance, beginning (a)

40,000 400,000

Add receipts :

Collection from customers (b)

590,000 590,000

Total cash available 630,000 630,000

Less disbursement:

Direct material ( c ) 245,000 245,000

Selling and Administrative (d)

430,000 430,000

Purchase a new web (e) 76,000 76,000

Dividend (e) 9,000 9,000

Total disbursement 760,000 760,000

Excess (deficiency) of cash available

(130,000) (130,000)

Over disbursement

Ashton CompanyCash Budget

For The Month Of December

Financing

Borrowing (f) 150,000 150,000

Total financing 150,000 150,000

Cash balance, ending 20,000 20,000

Ashton CompanyCash Budget

For The Month Of December (Continued)

THANKS!