The T Store

The following information is for the T Store a retailer of an I Reader and 9 Inch personal Tablet

Expense

Advertising 5% of sales

Advertising (fixed) $8,000 pa

Interest Paid $400 per month

Bank Charges $180 per month

Clerical staff wages $16,000 Per month

Sales Staff wages $20,000 Per Month

Depreciation showroom fittings $13,600 pa

Depreciation Office equipment $7,600 pa

General Office expenses $14,000 pa

Rent showroom $7,400 per month

Rent office $4,000 per month

Stationary $260 per month

Telecommunications $1,000 per month

Workers compensation $2% of total wages / salaries

Insurance $18,000 pa

Superannuation 9.50% of total wages / salaries

The T device store divides inventory into two categories

I readers

9 Inch personal readers

The T store set the selling price of all good by marking u the cost of purchased by 100% for all categories

Having taken into account industry trends and the current economic conditions, sales are expected to be as follows

July Aug Sep Oct

I reader $80,200 $76,400 $73,000 $72,000

9 Inch Tablet $65,000 $54,000 $59,000 $59,500

The T device store lies to hold enough stock to meet expected sales as follows

I Readers 80% of the cost of excepted sales for the next month

9 Inch personal Tablet 70% of cost of expected sales next month

Purchases of 9 inch tablet has already been calculated by the assistant accountant to be as follows

July $27,975

Aug $28,375

Task 1

using data above for the T device store prepare purchases budget for the quarter July to September for I readers only

The T Device Store

Purchases Budget for I-Readers

for the Quarter July - September 2018

July Aug Sept Total Oct

Sales Forecast

Cost of Sales

add Closing Stock

Requirements

less Opening Stock

Required Purchases

Task 2

using data for T device store prepare cost of goods sold budget for quarter July to September 2018 for 9 inch personal tablets. opening and closing values of inventory as well as purchases are to be included . these amounts are later required for inclusion in task 3

The T Device Store

Cost of Goods Sold Budget for 9-inch Personal Tablet

for the Quarter July - September 2018

July Aug Sept Total Oct

Workings - Sales

Workings - COGS expected

Opening Inventory

Purchases (Provided)

Goods available for sale

Closing stock

Cost of Goods Sold

Task 3 Using the above data for t device store prepare budget income statement showing classified expenses and using a periodic inventory system for quarter July to September 2018

note that in your answer, a total for the quarter is acceptable and individual months are not required

The T Device Store

Budgeted Income Statement

for the Quarter July - Sept 2018

I Reader 9 Inch Personal Tablet

Income

Sales

Less Cost of Goods Sold:

Opening Stock

Plus Purchases

Less Closing Stock

Gross Profit

Less Operating Expenses

Marketing

Advertising

Depreciation Showroom

Rent Showroom

Sales Salaries

Administration

Clerical Wages

Depreciation Office Equipment

Insurance

Office Expenses

Rent - Office

Stationery

Superannuation

Telecommunications

Workers Compensation

Financial

Bank Charges

Interest Paid

Net Profit