INSTRUCTION 1 The company of Jam Slippers Limited operates in a very price competitive market The Manager has asked your company to examine the business accounting activities for the financial year 2021 His accountant, John Major, was unclear in explaining the actual figures compared to what was budgeted Be mindful that the general inflation is running at 5 , and administrative expenses are charged at 10 of sales Calculate the variance percentage between the actual and the budget line items Explain the variance for each line item that occurred, whether a favourable or unfavourable result and the possible reason (s) Develop an income statement showing if a (profit loss) was made from the actual figures 2021 ACTUAL 2021 BUDGETED Number of pairs of slippers 20,400 22,500 $ $ Average price per slipper 5,000 00 5,500 00 Revenue 102,000,000 126,750,000 Material Cost 42,840,000 38,235,000 Labour Cost 28,705,200 27,682,200 Rent 3,600,000 3,200,000 Utilities 4,500,000 5,200,000 Administrative Costs 1,440,000 1,540,800 Marketing Costs 700,000 620,000 Administrative expenses 10,200,000 12,675,000 INSTRUCTION 2 Alexandre Adams is the owner and accountant at Dennis Enterprise Ltd, which sells computer gadgets The business is located at Shop 11, Main Street, Lucea P O , Hanover During August 2022, the following transactions took place August Balance cash in hand $ 1 000 1 Cash at bank $15 000 2 Paid rent in cash $ 1 500 3 Cleaning supplies paid in cash $ 120 5 Cash purchases paid by cheque $11 200 5 Cash Sales banked immediately $28 000 18 Salaries paid in cash $ 2 000 18 Drawings by cheque $ 4 000 20 Advertising expenses paid by cash $ 1 600 21 Cash sales $10450 21 Bank loan paid $14500 25 Received cash from credit customer C Johnson $ 4 500 28 Paid cash into bank $ 5 400 30 Purchased equipment paying by cheque $20 000 Task Record the following in a two column cash book for August 2022 Prepare the invoice using Microsoft Excel for C Johnson with the following items Tablet $4000 and Phone Case $500

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INSTRUCTION 1: The company of Jam Slippers Limited operates in a very price-competitive market. The Manager has asked your company to examine the business accounting

INSTRUCTION 1:

The company of Jam Slippers Limited operates in a very price-competitive market. The Manager has asked your company to examine the business accounting activities for the financial year 2021. His accountant, John Major, was unclear in explaining the actual figures compared to what was budgeted. Be mindful that the general inflation is running at 5%, and administrative expenses are charged at 10% of sales.

Calculate the variance percentage between the actual and the budget line items
Explain the variance for each line item that occurred, whether a favourable or unfavourable result and the possible reason (s)
Develop an income statement showing if a (profit/loss) was made from the actual figures.

	2021 ACTUAL	2021 BUDGETED
Number of pairs of slippers	20,400	22,500
	$	$
Average price per slipper	5,000.00	5,500.00
Revenue	102,000,000	126,750,000
Material Cost	42,840,000	38,235,000
Labour Cost	28,705,200	27,682,200
Rent	3,600,000	3,200,000
Utilities	4,500,000	5,200,000
Administrative Costs	1,440,000	1,540,800
Marketing Costs	700,000	620,000
Administrative expenses	10,200,000	12,675,000

INSTRUCTION 2

Alexandre Adams is the owner and accountant at Dennis Enterprise Ltd, which sells computer gadgets. The business is located at Shop 11, Main Street, Lucea P.O., Hanover.

During August 2022, the following transactions took place:

August Balance: cash in hand $ 1 000

1. Cash at bank $15 000

2 Paid rent in cash $ 1 500

3 Cleaning supplies paid in cash $ 120

5 Cash purchases paid by cheque $11 200

5 Cash Sales banked immediately $28 000

18 Salaries paid in cash $ 2 000

18 Drawings by cheque $ 4 000

20 Advertising expenses paid by cash $ 1 600

21 Cash sales $10450

21 Bank loan paid $14500

25 Received cash from credit customer: C. Johnson $ 4 500

28 Paid cash into bank $ 5 400

30 Purchased equipment paying by cheque $20 000

Task:

Record the following in a two-column cash book for August 2022.
Prepare the invoice using Microsoft Excel for C. Johnson with the following items: Tablet: $4000 and Phone Case: $500