Reference no: EM132685458
Question - The following data will be used to answer task 1, 2 and 3
GST is to be ignored for the question related to The T Device Store - The following information is for The T device Store , a retailer of an I reader and 9 Inch personal Tablet
Expenses
Advertising (discretionary) 5% of sales
Advertising (fixed) $8,000 pa
Interest Paid $400 per Moth
Bank Charges $180 per Month
Clerical Staff wages $16,000 per Month
Sales Staff wages $20,000 per month
Depreciation showroom fittings $13,600 pa
Depreciation Office equipment $7,600 pa
General Office Expenses $14,000 pa
Rent - Showroom $7,400 per month
Rent - Office $4,000 per month
Stationery $260 per month
Telecommunications $1,000 per month
Workers compensation 2% of total wages / salaries
Insurance $18,000 pa
Superannuation 9.5% of total wages / salaries
The T Device store divides inventory into two categories
I readers
9 inch personal tablet
The T Device store set the selling price of all good by marking up the cost of purchase by 100% for all categories
Having taken into account industry trend and current economic conditions, sale are expected to be as follows
July August September October
I readers $80,200 $76,400 $73,000 $72,000
9 Inch Personal Tablets $65,000 $54,000 $59,000 $59,500
The T device store like to hold enough stock to meet expected sales as follows :
I Readers 80% of the cost expected sales for the next month
9 Inch Personal Tablet 70% of the cost expected sale next month
Purchase of 9 inch personal tablets has already been calculated by the assistant accountant to be as follows
July $27,975
August $28,375
September $29,325
Task 1 - Using the above data supplied for the T device store prepare purchase budget for the quarter July to Sep 2018 for I readers only.
Task 2 - Using the above data supplied for The T device store prepare cost of goods sold budget for the quarter July to September 2018 for 9 Inch Tablet only Opening and closing values of Inventory as well as purchase are to be included , These amounts are later required for inclusion in task 3.
Task 3 - Using the above data supplied for the T device store, prepare budgeted income statement showing classified expenses and using a periodic inventory system for the quarter July to September 2018.