A company starts manufacture in April 2009. The prime cost for one unit is expected to be Rs,200 (Rs. 8 for materials and Rs.120 for labour) . IN addition , variable expenses per unit are expected to be Rs. 40 and fixed expenses per month will be Rs. 1500000. Payment for materials is to be made in the month following the purchase. One-third of sales will be for cash. And the rest on credit to be settled in the following month. Expenses are payable in the month in which they are incurred. Selling price is Rs. 400 per unit. The number of units manufactured and sold are expected to be as under:

April 9000 units
may 12000 units
June 18000 units
July 21000 units
Aug 21000 units
Sept 24000 units
prepare the cash budget for April to September 2009 ignoring the question of stocks.

cash budget all figures in rupees.

April may june july august september

number of units 9,000 12,000 18,000 21,000 21,000 24,000

cash sales 1,200,000 1,600,000 2,400,000 2,800,000 2,800,000 3,200,000
credit sales 0 2,400,000 3,200,000 4,800,000 5,600,000 5,600,000

total sales 1,200,000 4,000,000 5,600,000 7,600,000 8,400,000 8,800,000

materials cost 0 720,000 960,000 1,440,000 1,680,000 1,680,000
labour cost 1,080,000 1,440,000 2,160,000 2,520,000 2,520,000 2,880,000
variable cost 360,000 480,000 720,000 840,000 840,000 960,000
fixed cost 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000

total cost 2,940,000 4,140,000 5,340,000 6,300,000 6,540,000 7,020,000

over/under cash -1,740,000 -140,000 260,000 1,300,000 1,860,000 1,780,000

achyant_27, is that just clear as mud now?