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Budgeted expenses are: 2019 July August September Operating Expenses (subject to GST): Administration expenses 10,000 9,500 9,400 Selling...

This question was created from FNSACC503 Assessment Task 01 v5.1.pdf


DIT Tronics sells a single product. DIT Tronics provides the following information for the period 1 July to 30 September 2019: Budget sale may--------48,000 june--------49500 July--------50,000 Aug-------53000 sep-----56000 0ct-------58000 Cost of goods sold: Mark-up is 150% on cost. Stockholding policy: DIT Tronics purchases the inventory from a local distributor. Because the delivery is prompt, it minimises inventory holding costs by planning to keep on hand, at the end of each month, 25% of next month's estimated requirement. Payments to account payables: All inventories are purchased on credit. DIT pays 75% of the accounts payable in the month following purchase and claims 5% discount. The remainder is paid in the month following that. Receipts from accounts receivable: 80% of all sales are credit sales. DIT offers a 5% discount for payments in the same month as sale and 75% of all accounts receivable take advantage of this offer. Of the credit sales, 98% is collected in the month following sale. Bad Debt: The uncollected amount is treated as a bad debt. Depreciation: $1,000 per month on equipment and $1,200 per month on motor vehicle (treat as administration expenses). Drawings: $2,000 per month. Non-Current Asset: Equipment costing $8,000 is to be purchased in July 2019. Opening Cash Balance: $2,000 at 1 July 2019. Question (f) Operating Expenses Budget (g) To whom do you think you should distribute the budget to within the organisation? Why you need to follow ethical requirements in preparing budgetary forecasts and projections?


Budgeted expenses are :
Operating Expenses ( subject to GST^ :
Administration expenses
10, 000
9, 500
9, 400
Selling expenses
4, 000
Other Expenses
Sales wages
5, 500
6, 200
Interest payable*
1, 000
1, 000
1, 000
Required : Prepare a Master Budget using Excel Spreadsheet for the quarter ending 30 September
2019 comprising*

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