Sonia Pitt, naturopath, has prepared the following revenue budget for the quarter ending 30 September 2011. All the receipts of Sonia Pitt would be either GST-free supplies or input tax supplies. She trades in the medical field, investment interest is input taxed and it is assumed that rental income is from residential rents.

Revenue budget
			July	August	September	Total for Qrtr.
			$	$	$		$
Consultation fees
Normal			10290	9870	8960		29120
Home visits		2220	2100	1920		6240
Fees income		12510	11970	10880		35360
Sales
Vitamins and minerals	1750	1430	1310		4490
Herbal remedies		1450	1550	1430		4430
Sales income		3200	2980	2740		8920
Other income
Rental income		500	500	500		1500
Investment interest				150		150
Total other income		500	500	650		1650
Total revenue		16210	15450	14270		45930

1. Prepare a cash receipt budget for Sonia Pitt for quarter ending 30 September.

	July	August	September	Quarter

If the entity is operating on a strictly cash basis then the input tax credits will be recorded separately when the payments are made, as this is the amount the entity is entitled to claim back from the ATO.

While preparing her budgets, Sonia Pitt estimated expense details as follows. Note that figures given are GST-inclusive where appropriate.

Purchases of oils, minerals, vitamins(GST free)	$30000 incurred evenly throughout the year
Rent (10% GST)	$1600 per month
Laundry (10% GST)	$1800 incurred evenly throughout the year
Telephone (10% GST)	$250 per quarter payable in March, June, September, December
Insurances (10%GST)	$1500 payable in August
Stationery (10% GST)	July- $450
Motor vehicle running costs (10% GST)	$0.50 per km Estimated for the coming quarter July-200km August-250km September-220 km
Depreciation (no GST)	$2400 though

Sonia intends to purchase a new massage table in July at a cost of $550(including GST)

1. Prepare a Cash payments budget for quarter ending 30 September.

	July	August	September	Quarter

1. Sporty Motors produces bikes and requires a production budget for the quarter ended September showing details of individual months. The firm requires its closing inventory on hand of finished goods, each month, to be equal to 40% 0f next month's sales. Stock at 30 June is expected to agree with this requirement. Stocks of work in process at the end of each month are nil.From the sales budget of Sporty Motors, the following information is available:

July August September

Sales in units 27500 33000 23000

Budgeted sales for October are estimated to be the same as September.

Prepare a production budget for quarter ending 30 September.

Sporty Motors

Production budget for quarter ending 30 September

	July $	August $	September $	Quarter $
Sales
Add: Desired ending inventory
Total units needed
Less: Beginning inventory
Units to be produced

Sporty Motors estimates costs as:

Direct materials $50 per unit

Direct labor $25 per unit

Variable factory overhead $15 per unit

Fixed factory overhead $100,000 pa

Prepare a Cost of production budget, for different levels of productions below.

Cost of production budget for year ended..........

	5000 units	6000 units	7000 units
Type of cost	Unit cost $	Total cost $	Unit cost $	Total cost $	Unit cost $	Total cost $
Direct materials	$50		$50		$50
Direct labor	$25		$25		$25
Variable factory overhead	$15		$15		$15
Fixed factory overhead