From the following information relating to Bailey's Manufacturing Pty Ltd : Prepare the budgeted Income Statement (Budget
Question:
From the following information relating to Bailey's Manufacturing Pty Ltd:
- Prepare the budgeted Income Statement (Budget 2)for the three months Quarter ending December 2020. Actuals for this budget have not been determined at this time.
- Nominate at least 1 Key Performance Indicator (KPI) in this budget
Baileys Manufacturing Pty Ltd Sales Budget | |||
Unit Sales | Unit Price | Sales revenue | |
October | 1,000 pcs. | $150 | $150,000 |
November | 1,200 pcs. | $150 | $180,000 |
December | 1,300 pcs. | $180 | $234,000 |
Baileys Manufacturing Pty Ltd Production Budget | |||||
Unit Sales | Closing Stock | Total required | Opening Stock | Estimated Production | |
October | 1,000 pcs. | 50 pcs. | 1,050 pcs. | 150 pcs. | 900 pcs. |
November | 1,200 pcs. | 70 pcs. | 1,270 pcs. | 50 pcs. | 1,220 pcs. |
December | 1,300 pcs. | 90 pcs. | 1,390 pcs. | 70 pcs. | 1,320 pcs. |
The cost of production budget shows the manufacturing cost per unit as follows:
October $88 opening stock
November $90
December $95
Baileys Manufacturing Pty Ltd Operating expenses budget | ||||
Expense | October | November | December | Total |
Selling | $9,000 | $9,500 | $9,000 | $27,500 |
Administration | $1,000 | $2,000 | $1,500 | $4,500 |
Financial | $2,000 | $2,000 | $3,000 | $7,000 |
Opening stock for the month of October only is valued at $88 per unit.
The tax rate is 30 per cent
Bailey's Manufacturing Pty Ltd use Average cost for stock valuation