MCD2150 Accounting for Managers

Week 9 Student Activity

JJ Asian Cuisines has been operating the business for more than 2 years. Recently there are few big supermarkets that approached the business for few big contracts. Some local smaller size shops also started trading with the business. The business also sells directly only to end-users.

The following estimates have been made with respect to the third quarter of operation in 2021:

J |_ Additional information: All the grocery purchases are made on credit and paid for in the month following 512 3.55 60 the purchase. Groceryr purchases in June were ' ' Percentage of purchases {Packaging} on credit Utilities; Electricity, Gas and Water are all paid at the end of the quarter Rent is paid in advance at the beginning of the quarter All other expenses are paid at the time thev are incurred 553,222.32 Bank balance at the beginning of the budget period is Pattern of receipts from Aft: Receivable Same month as sale Month following month of sale Second month following month of sale Third month following month of sale Pattern of payments from AIC Payable ; Packaging Suppliers Same month of purchase Month following month of purchase Budgeted information for 3rd quarter 2021 ($) July August Sept $ 28,029.60 $ 33,638.40 $ 25,228.80 Cash Sales $ 12,016.80 S 14,421.60 $ 10,814.40 Credit Sales $ 40,046.40 48,060.00 $ 36,043.20 Total $ 13,181.94 $ 15,819.75 $ 10,863.02 Cost of Packaging and Groceries used $ 2,239.80 2,685.00 $ 2,022.40 Packaging purchases $ 10,957.14 13,149.75 9,861.82 Grocery purchases 667.44 S 801.00 600.72 Petrol Advertising 800.00 300.00 300.00 Wages 11,555.72 11,583.54 11,541.82 Depreciation expense - Vacuum sealer 11.11 11.11 11.11 Depreciation expense -Bowl sealing machine 50.00 50.00 50.00 Depreciation expense - website 33.33 33.33 33.33 Depreciation - car 166.67 166.67 166.67 Rent expense 1,320.00 1,320.00 1,320.00 Electricity and Gas 1,617.36 1,929.00 1,461.68 Water 151.24 173.50 140.12 Actual Sales Actual Purchases (Packaging] Cash Credit $19,051.20 $8,164.80 $1,525.00 March March $21,772.80 $9,331.20 $1,765.00 April April $27,216.00 $11,664.00 $2,175.00 May May $32,659.20 $13,996.80 June June $2,638.00