ACCOUNTING 401 Case Study – J. Jones Pty Ltd

Case StudyJ. Jones Pty Ltd has provided the following information for the quarter ended in March 2016.Budget production cost per unit: Budget Per unit Actual Per unit $ $.364px;=”” collapse;=”” 12px=””>Direct materials 41,80042.3Direct labour 1.201.15Indirect – variable 3.603.50Plus Direct – fixed (per month) 80008500Sales estimates (number of items):BudgetActualJanuary28002600February30002990March32503560The budget selling price for the product is $85 per box, but the company’s actual price varies according to negotiations with customers who buy in bulk.Sales revenue: Actual $January 224 120 February 249 665 March 306 010 Period expenses:.364px;=”” collapse;=”” 12px=””>BudgetActualJanuaryFebruaryMarchJanuaryFebruaryMarchAdministration expenses16 70017 00017 50017 00017 20016 500Selling expenses47 60051 00055 25049 30654 92667 322Financial expenses8 5008 5008 5008 5008 5008 500 ActivityFrom this data you are required to prepare the following reports using the software of your choice and analyse these reports to present a variation report. Assume that a variation of +/- 5% of the actual result compared to the budgeted figure is acceptable in your analysis.Cost of production budgetIncome statement budgetCost of productionPrepare an income statement performance report for budget and actual showing gross profit and net profit for each month and the quarter.Prepare a performance report showing the variance for the quarter in dollars and percentages.An analysis of the report. Assume that a variation of +/- 5% budget to actual is acceptable in your analysis.