a. Champs Ltd. has the following information as on. June 30, 2021- 07 i) Raw materials were purchased on $5,20,500 ii) For employee services indirect labor of $31,300, officer’s salaries of 19,000 & salesman’s commission of $25,000 were incurred. iii) Office’s machine’s depreciation was recorded as $10,250. iv) Advertising costs were $400. v) According to jobs cost sheet goods of $4,00,350 were packaged & delivered to 2 customer during the month. Company sold all those on cash which is 19.5% above cost.
Requirement: Prepare necessary ledger accounts & income statement for Champs company
.b. From your point of view explain the necessity of budgeting.