question archive Task 1 Greg retail balance Sheet for the 12 Months ended 30 June 2018 Current Assets Cash 40,000 Inventories 65,000 Total current assets 105,000 non Current assets Building 520,000 Shop Fittings (net) 104,000 Motor Vehicle (net) (1) 110,000 Total non current assets 734,000 Total assets 839,000 Current Liabilities apple building society loan due less than 12 months 27,392 Total current liabilities 27,392 Non current Liabilities Mortgage 160,000 Total non current liabilities 160,000 Total Liabilities 651,608 Owners equity Capital 651,608 Total owner equity 651,608 The following budget information is obtained for the 2019 financial year Ignore GST Sales $700,000 Cost of sales all products are marked up by 300% on cost Marketing costs $90,108 Administrative $80,000 Salaries Administration $130,000 Salaries Sales $114,000 Finance costs $52,000 Superannuation 9
Task 1 Greg retail balance Sheet for the 12 Months ended 30 June 2018 Current Assets Cash 40,000 Inventories 65,000 Total current assets 105,000 non Current assets Building 520,000 Shop Fittings (net) 104,000 Motor Vehicle (net) (1) 110,000 Total non current assets 734,000 Total assets 839,000 Current Liabilities apple building society loan due less than 12 months 27,392 Total current liabilities 27,392 Non current Liabilities Mortgage 160,000 Total non current liabilities 160,000 Total Liabilities 651,608 Owners equity Capital 651,608 Total owner equity 651,608 The following budget information is obtained for the 2019 financial year Ignore GST Sales $700,000 Cost of sales all products are marked up by 300% on cost Marketing costs $90,108 Administrative $80,000 Salaries Administration $130,000 Salaries Sales $114,000 Finance costs $52,000 Superannuation 9
Subject:AccountingPrice: Bought3
Task 1
Greg retail balance Sheet for the 12 Months ended 30 June 2018
Current Assets
Cash 40,000
Inventories 65,000
Total current assets 105,000
non Current assets
Building 520,000
Shop Fittings (net) 104,000
Motor Vehicle (net) (1) 110,000
Total non current assets 734,000
Total assets 839,000
Current Liabilities
apple building society loan due
less than 12 months 27,392
Total current liabilities 27,392
Non current Liabilities
Mortgage 160,000
Total non current liabilities 160,000
Total Liabilities 651,608
Owners equity
Capital 651,608
Total owner equity 651,608
The following budget information is obtained for the 2019 financial year Ignore GST
Sales $700,000
Cost of sales all products are marked up by 300% on cost
Marketing costs $90,108
Administrative $80,000
Salaries Administration $130,000
Salaries Sales $114,000
Finance costs $52,000
Superannuation 9.50% allocate by department
workers compensation 3% allocate by department
other receipts
planned sale of motor vehicle on 1 July 2018 $89,090 estimated proceeds
New ABC short term loan established during 2019 financial year (due in less than 12 months) $15,810
Other payament
New motor vehicle purchase $130,000
Loan repayments (all off mortgage principal) $44,000
Other expenses
Depreciation on the new motor vehicle $30,000 in 2019
Depreciation on shop fittings 15% off the written down value as at 30 June 2018
Other information
all sales of inventory are for cash
closing bank balance expected to be overdrawn by $19,100
Inventories on hand at the end of June 2019 are $56,000
The sale of the motor vehicle will take place without further depreciation
In the budget year the firm expects to discharge the apple building society loan in full
round all amounts to whole numbers (no cents)
prepare the following budgets in the template provided for the year ended June 2019
Cost of good sold budget
Purchase budget
Income statement (split expenses by department
Balance sheet budget
Task 2
Craig Book wholesaler advises you of the following
Opening Bank balance as at 1st July $17,000
Net sales
May June July August September
actual actual Budget Budget Budget
$18,000 $16,000 $15,000 $16,400 $18,000
sales are 60% credit and 40% for cash
account customer normally pay as follows
40% in the month of sale and earn a 5% discount
30% in the month after the sale with no discount allowed
25% in the second month after the sale with no discount allowed
The remaining 5% are Bad Debts
Rental Income is $5,000 per month
Council Rate of $1,600 are due to be paid in September
all purchases are paid for in the month after purchase and are expected to be
June July August September
Actual Budget Budget Budget
$3,800 $2,800 $3,600 $4,000
Operating expenses which are paid in the current month are expected to be
Marketing ($) Admin & General ($)
July 800 1,200
August 560 1,520
September 640 1,320
administration and general expenses include depreciation of $200 per month
Required
from the information above prepare cash budget for each of the three months July , Au & Sept (ignore GST and calculations to the nearest dollar) this budget should be broken down into three sections cash recipes cash payments and cash budget summary
Task 3
Priscilla manufacture Jars of jam the management of Priscilla company would like to know what the effect on profits is for different activity levels
You are provided with the following details
sales $2 per unit
variable cost $1.25 per unit
Fixed cost
Factory overheads is $480,000 per annum
selling cost are $12,000 per month
administration and financial expenses $150,000 per quarter
Prepare flexible budget showing the contribution margins at the following activity level of light globs sold during a month
190,000: 200,000: 210,000
Task 4
A manufacture provides you with following performance report
Required
calculate the variance and state whether they are favorable or unfavorable
Manufacturer
comparison of budget to actual for the year ended 30 June 2018
Budget Actual Variance F/UF
Sales 1,000,000 1,024,000
Less variable costs
Direct materials 240,000 254,000
Direct Labour 120,800 117,200
Factory Overhead 87,200 90,000
Selling 66,200 70,000
Administration and finical 16,800 40,000
Total variable expenses 531,000 571,200
Contribution margin 469,000 452,800
Less fixed cost
Factory overheads 80,000 80,000
Selling 12,000 14,000
Administration and Financial 50,000 44,000
Total fixed expenses 142,000 69,000
Net Profit 327,000 314,800
