SCENARIO 1

Ceramica Pty Ltd is a small trading firm that manufactures and sells ceramic frames. The accounting firm you are working for has been approached by Ceramica to review the budgets they are working with for the current year and made a master budget for the firm for the following year.

Robin Taylor, the business manager of Ceramica Pty Ltd, noticed that the firm has been paying a substantial amount in rental fees due to overproduction. He reduced production of new units since May of the current year to 1000 units per month, but he wants to further reduce the number to 500 units per month in the hopes of decreasing monthly rent. In the hopes of also staying ahead of the firm's production needs, he wants you to make a sales budget for the next financial year using the average sales for each quarter from the current financial year. This way he can determine if the units that he will be producing each month will be enough to meet the sales for the succeeding month.

For the purpose of this assessment, the date today is 1 June 20xx, quarter 4 of the current financial year.

20xx represents the current year.

Task 3.1: Sales Budget

Refer to the actual sales budget data for the current year in the following file:

Ceramica Pty Ltd Operational Budget for 20xx+1

Quarter 1 July 2,999.00 2,899.00 2,789.00 October 3,675.00 August September Actual Sales Budget for 20xx November December Quarter 2 Quarter 3 January February 6,652.00 19.95 19.95 19.95 57,835.05 55,640.55 19.95 19.95 73,316.25 132,707.40 6,654.00 19.95 132,747.30 1,950.00 19.95 38,902.50 1,845.00 19.95 March 1,465.00 19.95 April 1,854.00 19.95 Quarter 4 May 1,865.00 19.95 June 2,011.00 36,807.75 29,226.75 36,987.30 37,206.75 173,305.65 338,770.95 104,937.00 19.95 40,119.45 114,313.50 Actual Sales (units) Ceramic Frames Unit selling price Sub Total Quarter Total 59,830.05