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.
