My grammar is 💯 good I
7296 Points
Joined March 2019
Budgeted production =
= Forecast sales + closing inventory of finished goods – opening inventory of finished goods
-
Material usage budget
Material usage =
Budgeted production x Quantity required to produce one unit
-
Material purchases budget
Material purchases budget =
Material usage budget + closing inventory (of material kg/l) – opening inventory (of material kg/l)
Cash budget= receipts- outflows = net cash + opening cash
Input the data in columns like below
January
($000) |
February
($000) |
March
($000) |
CASH INFLOWS
Sales |
30 |
202 |
374 |
CASH OUTFLOWS
Labour
Materials
Overheads |
45
88
35 |
75
119
50 |
108
69
73 |
| NET CASHFLOW |
(138) |
(42) |
124 |
| OPENING CASH BALANCE |
150 |
12 |
(30) |
| CLOSING CASH BALANCE |
12 |
(30) |
9 |