Develop and Manage a Budget: A Comprehensive Project

Desklib provides past papers and solved assignments for students. This project focuses on developing and managing budgets.

Develop and Manage a Budget
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Table of Contents
ASSESSMENT: 1...........................................................................................................................................2
TASK: 1 Sales budget...................................................................................................................................2
TASK: 2 Purchase budget.............................................................................................................................2
TASK: 3 Expense budget..............................................................................................................................3
TASK: 4 Budgeted income statements.........................................................................................................4
Task: 5 Production budget...........................................................................................................................7
Task: 6 Performance reports:......................................................................................................................7
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ASSESSMENT: 1
TASK: 1 Sales budget
Sales Budget of Crazy Loes for March Quarter
Sydney Melbourne Brisbane Gold
coast
Adelaid
e
Perth
expected
unit sales
740 680 620 710 550 420
*price per
unit
$260 $220 $200 $190 $180 $170
total gross
sales
$192,400 $149,600 $124,000 $139,400 $99,000 $71,400
less:
sales
discount
and
allowances
nil nil nil nil nil nil
total net
sales
$192,400 $149,600 $124,000 $139,400 $99,000 $71,400
TASK: 2 Purchase budget
Purchase Budget of Home Station Winery for a three-month period ending on 31 December.
October November December
budgete
d usage
$80,000 $93,333 $166,675
add:
desired
closing
stock
$210,000 $375,000 $187,500
less:
opening
stock
available
($144,000) ($210,000) ($375,000)
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budgete
d
purchase
$146,000 $258,333 ($20,825)
purchase
price per
unit
$26.25 $26.25 $26.25
total
purchase
cost
$3,832,500 $6,781,241.25 ($546,656.25)
TASK: 3 Expense budget
Expense budget for the rainbow to monitor rainbow & mickey s operation
Particular Amount$
OPERATING
EXPENSES(fixed):
Rent $1,000
manager salary $6,000
depreciation of
delivery vehicle
$1,000
depreciation on
fixtures &fittings
$1,500
stationery $1,100
general expenses $800
advertisement $1,900
commission $1,900
cartage $950
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discount allowed $2,375
Total operating
expenses
$18,525
NON-OPERATING
EXPENSES(VARIABLE
)
Interest on loan $2,500
advertisement
(variable)
$1,900
Total non-operating
expense
$4,400
total expense
(operating + non-
operating)
$22,925
TASK: 4 Budgeted income statements
Budgeted income statement of Rhino Cleaning of different departments for the three months to end
on 31st March
$Amount
Sales $45,000
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less: cost of
sales
($6,000)
Gross profit $39,000
add:
Administration
expenses
$2,500
Marketing
expenses
$4,900
Operating
earnings
$46,400
Less: financial
expenses
($1,200)
Earnings
before
interest and
tax
$45,200
Less :income
tax expense : nil
Total net
income
$45,200
Note:1
calculation
of the cost
of sales: opening stock + purchase - closing stock
=$7000+$8000-$9000
=$6000
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Task: 5 Production budget
Production budget of Wombat trading for the month of July, August and September are as follows:
Particular July august September
expected
sales units
$6,000 $7,200 $9,000
add:
desired
closing
stock(units
)
90 81 99
less:
available
opening
stock(units
)
48 90 81
number of
units to
produce
$6,042 $7,191 $9,018
Task: 6 Performance reports:
The flexible budget of Vinton Industries for December
BUDGETD OUTPUT
180000units
ACTUAL OUTPUT
195000units
per unit$ amount per unit amount
Variable
expenses
:
material 2 $90,000 2 $97,500
direct
labor
1.67 $108,000 1.7 $114,750
prime
cost :(1)
$3.67 $198,000 $3.70 $212,250
Factory
overheads
:
Variable : 3.33 $54,000 3.42 $57,000
fixed: 2.86 $63,000 3.09 $63,000
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work
cost :(2)
$6.19 $117,000 $6.51 $120,000
total cost
of sales
(1)+(2):
$9.86 $315,000 $10.21 $332,250
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