Reference no: EM132685458

Question - The following data will be used to answer task 1, 2 and 3

GST is to be ignored for the question related to The T Device Store - The following information is for The T device Store , a retailer of an I reader and 9 Inch personal Tablet

Expenses

Advertising (discretionary) 5% of sales

Advertising (fixed) $8,000 pa

Interest Paid $400 per Moth

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

Stationery $260 per month

Telecommunications $1,000 per month

Workers compensation 2% of total wages / salaries

Insurance $18,000 pa

Superannuation 9.5% of total wages / salaries

The T Device store divides inventory into two categories

I readers

9 inch personal tablet

The T Device store set the selling price of all good by marking up the cost of purchase by 100% for all categories

Having taken into account industry trend and current economic conditions, sale are expected to be as follows

July August September October

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

9 Inch Personal Tablets $65,000 $54,000 $59,000 $59,500

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

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

9 Inch Personal Tablet 70% of the cost expected sale next month

Purchase of 9 inch personal tablets has already been calculated by the assistant accountant to be as follows

July $27,975

August $28,375

September $29,325

Task 1 - Using the above data supplied for the T device store prepare purchase budget for the quarter July to Sep 2018 for I readers only.

Task 2 - Using the above data supplied for The T device store prepare cost of goods sold budget for the quarter July to September 2018 for 9 Inch Tablet only Opening and closing values of Inventory as well as purchase are to be included , These amounts are later required for inclusion in task 3.

Task 3 - Using the above data supplied for the T device store, prepare budgeted income statement showing classified expenses and using a periodic inventory system for the quarter July to September 2018.