FNSACC503 Manage Budgets And Forecasts - Assignment 3

PART B

Task 3 Retail industry – Income statement

This task required the preparation of a Budgeted Income Statement for the E device store showing classified expenses and using a periodic inventory system for the quarter July to September 2018. A total for the quarter was required.

When setting up master worksheets such as these always double check your answers manually and review to see if they actually look correct! This Budget should total around $7,499 approx. Your total is well under at -$309,341. This would not be an acceptable variance in a workplace situation. Imagine reporting such a loss to the owners when in fact there was a small profit!

Whilst COGS and Sales are separated by Product, do not separate the expenses.

Cost of Goods Sold has incorrect values due to consequential errors in prior budgets.

Expense Classification. There is additional information on the OLS regarding classifying expenses into departments. Your introductory accounting text book also contains this information.