MANAGEMENT ACCOUNTING

FUNDAMENTAL
(ACC 1511)

TOPIC: BUSINESS REPORT

GROUP NAME: WE CHEF
PARTNERSHIP

NAME
SITI FARHANA NABILAH BT JUMALI
AFIFAH NABILAH BT MOHAMAD SAFEI
SHARINA AZLEEN BT ERMAN EFENDI
AISHAHTUL AFIEQAH BT AZMAN SHAH
NUUR NAJIHAH BT RIDZUAN
RUZANA BT SUHAIMI

Lecturers Name:Dr.NurBarizah Abu Bakar

Section

:2

Session

: Semester 1(14/15)

~1~

MATRIC NO.
1321592
1321976
1323568
1324070
1320444
1322836

TABLE OF CONTENTS

DETAILS

PAGES

TABLE OF CONTENTS
1.0 SUMMARY OF CHANGES IN BUSINESS PLAN ITEMS
1.1 CLASSIFICATION OF PRODUCT COST
1.2 PRICING ANALYSIS
1.3 MASTER BUDGET
1.4 COST-VOLUME-PROFIT ANALYSIS

2
3-6
6-7
7 - 32

2.0 COMPARATIVE STATEMENT OF COMPREHENSIVE

INCOME AND STATEMENT OF FINANCIAL POSITION
2.1 STATEMENT OF COMPREHENSIVE INCOME
2.2 STATEMENT OF FINANCIAL POSITION
32 - 33
34
35 - 36
37 -40

3.0 MANAGEMENT REPORT

4.0 APPENDIX

1.0 SUMMARY OF CHANGES IN THE BUSINESS PLAN ITEMS

~2~

1.1 CLASSIFICATION OF PRODUCT COST

There are some changes made in the business plan items. After a long discussion with the
group members, We Chef Partnership decided to reduce the amount of sandwiches sold per
week. The changes are made due to our time constraint to conduct the business as students.
The changes in the quantity of sandwiches sold are as below:
Budgeted Sales
Week 1
Mackerel Sandwiches
20
Chicken and Cheese 24

Week 2
68
66

Week 3
68
66

Week 4
68
66

Total
224
222

Sandwiches
Egg Mayo Sandwiches

66

66

66

218

Week 1
Mackerel Sandwiches
20
Chicken and Cheese 24

Week 2
33
34

Week 3
33
34

Week 4
33
34

Total
119
126

Sandwiches
Egg Mayo Sandwiches

33

33

33

119

20

Actual Sales

20

As we are selling sandwiches, we need to buy the food supplies at most every week to
avoid the foods from spoil especially for bread, cheese, chicken ham and eggs. The changes
and differences in the price occurred because we chose the cheapest price of the items needed
which are available at that time. Besides, the changes in the quantity bought are due to the
changes in the quantity of actual sales from the budgeted sales. The table below shows the
changes made in price and quantity of direct materials needed:
COST

PRICE PER UNIT

QUANTITY

(RM)

~3~

TOTAL

TYPE OF

COST (RM)

COST

Bread

3.35

10.05

2.80

12

33.60

2.65

13.25

2.40

2.40

Variable

59.30
Mackerel
Cheese Slices
Chicken Ham
Mayonnaise

11.39
5.99
3.79
8.29

2
7
9
1

22.78
41.93
34.11
8.29

0.99

1.98

2.99

2.99

Variable
Variable
Variable
Variable

13.26
Eggs

5.39

5.39

4.29

4.29

Variable

9.68
Margarine

4.69

4.69

4.99

4.99

Variable

9.68
Plastics
Direct Labor
Rent
Transportation
Advertisement

7.49
0.5
17.10
10
2.00

1
Per Hour
Per Month
Per Week
Per Month

7.49
11.00
17.10
40.00
2.00

Variable
Variable
Fixed
Fixed
Fixed

The changes in the price and quantity of direct materials caused changed in the variable and
fixed cost per unit which are shown below:
Variable Cost Per Unit
Item
Bread

Types of Sandwiches
Mackerel (RM)
Chicken and Cheese (RM)
0.16
0.16

~4~

Egg Mayo (RM)

0.16

Mackerel
Cheese Slices
Chicken Ham
Eggs
Mayonnaise
Margarine
Plastics
Direct Labor
Total Variable Cost

0.19
0.06
0.04
0.02
0.03
0.50

0.33
0.27
0.02
0.03
0.81

0.08
0.06
0.04
0.02
0.03
0.39

Per Unit

Fixed Cost Per Unit

Rent
Transportation
Advertisement

Price (RM)
17.10
10
2.00

Quantity
Per Month
Per Week
Per Month

Total Cost (RM)

17.10
40.00
2.00
59.10

Total Fixed Cost Per Unit (RM)

RM 59.10
=RM 0.16
364

1.2 PRICING ANALYSIS

Some changes also made in term of the pricing analysis which are shown below:
Price = Total Cost + (Markup Percentage Total Cost)
a) Mackerel Sandwiches
Total Cost Per Unit of Production (RM)
Markup Percentage (%)
Targeted Profit Per Unit (RM)
Selling Price Per Unit (RM)
b) Chicken and Cheese Sandwiches

0.50 + 0.16 = 0.66

81.82
0.54
1.20

Total Cost Per Unit of Production (RM)

Percentage of Targeted Profit (%)

0.81 + 0.16 = 0.97

54.64

~5~

Targeted Profit Per Unit (RM)

Selling Price Per Unit (RM)

0.53
1.50

c) Egg Mayo Sandwiches

Total Cost Per Unit of Production (RM)
Percentage of Targeted Profit (%)
Targeted Profit Per Unit (RM)
Selling Price Per Unit (RM)

0.39 + 0.16 = 0.55

118.18
0.65
1.20

1.3 MASTER BUDGET

There are several changes made in the master budget which are in sales budget, production
budget, direct material budget, production overhead budget, selling and administrative
budget, cash receipt budget, cash disbursement budget and cash budget. Meanwhile, direct
labor budget remains the same. The schedules below show the comparison between the
budgeted master budgets and the actual master budgets:

~6~

1.3.1 SALES BUDGET

We Chef Partnership
Sales Budget for the Month Ending 30th November 2014 (Budgeted)
1

Weeks
3

Month
4

Mackerel
Sandwiches Revenue
Budgeted Sales(units)
Selling Price

20

68

68

68

224

RM1.20

RM1.20

RM1.20

RM1.20

RM1.20

RM24.00

RM81.60

RM81.60

RM81.60

RM268.80

66

66

222

Mackerel Sandwiches
Sales Revenue

Chicken and Cheese

Sandwiches Revenue
Budgeted Sales(units)
Selling Price

24

66

RM1.50

RM1.50

RM1.50

RM1.50

RM1.50

RM36.00

RM99.00

RM99.00

RM99.00

RM333.00

Chicken Cheese
Sandwiches Sales
Revenue
Egg Mayo
Sandwiches
Budgeted Sales(units)
Selling Price

20

66

66

66

218

RM1.20

RM1.20

RM1.20

RM1.20

RM 1.20

RM24.00

RM79.20

RM79.20

RM79.20

RM261.60

Egg Mayo Sales

Revenue

~7~

Total Sales Revenue

RM84.00

RM259.80

RM259.80

RM259.80

RM863.40

We Chef Partnership
Sales Revenue for the Month Ending 30th November 2014 (Actual)
1

Weeks
3

Month
4

Mackerel
Sandwiches Revenue
Budgeted Sales(units)
Selling Price

20

33

33

33

119

RM1.20

RM1.20

RM1.20

RM1.20

RM1.20

RM24.00

RM39.60

RM39.60

RM39.60

RM142.80

34

34

126

Mackerel Sandwiches
Sales Revenue
Chicken and Cheese
Sandwiches Revenue
Budgeted Sales(units)
Selling Price

24

34

RM1.50

RM1.50

RM1.50

RM1.50

RM1.50

RM36.00

RM51.00

RM51.00

RM51.00

RM189.00

Chicken Cheese
Sandwiches Sales
Revenue
Egg Mayo
Sandwiches
Budgeted Sales(units)
Selling Price

20
RM1.20

33

33

33

119

RM1.20

RM1.20

RM1.20

RM 1.20

~8~

Egg Mayo Sales

Revenue

RM39.60

RM39.60

RM39.60

RM142.80

RM130.20

RM130.20

RM130.20

RM474.60

RM24.00

Total Sales Revenue

RM84.00

Based on the actual schedule, the total sales revenue for Week 1 is RM84. Meanwhile,
the total sales revenue for Week 2 until Week 4 is RM130.20 respectively. Thus, the actual
total sales revenue for month ending 30 th November 2014 is RM474.60. The differences in
the sales revenue between the budgeted sales budget and actual sales budget is due to the
changes in the quantities of sandwiches produced which are actually 364 units for the whole
month and not 664 units as budgeted.
1.3.2 PRODUCTION BUDGET
We Chef Partnership
Production Budget for the Month Ending 30th November 2014 (Budgeted)
1

Weeks
3

Month

20

68

68

68

224

20

68

68

68

224

Inventory

Units to be Produced

20

68

68

68

224

Mackerel
Sandwiches Revenue
Sales (units)
Add: Desired Ending
Inventory
Total Needed

Less: Beginning

~9~

Chicken and Cheese

Sandwiches Revenue
Sales (units)

24

66

66

66

222

Inventory

Total Needed

24

66

66

66

222

Inventory

Units to be Produced

24

66

66

66

222

20

66

66

66

218

Inventory

Total Needed

20

66

66

66

218

Inventory

Units to be Produced

20

66

66

66

218

64

200

200

200

664

Add: Desired Ending

Less: Beginning

Egg Mayo
Sandwiches
Sales (units)
Add: Desired Ending

Less: Beginning

Total Units to be
Produced

We Chef Partnership

~ 10 ~

Production Budget for the Month Ending 30th November 2014 (Actual)
1

Weeks
3

Month

20

33

33

33

119

20

33

33

33

119

Inventory

Units to be Produced

20

33

33

33

119

24

34

34

34

126

Inventory

Total Needed

24

34

34

34

126

Inventory

Units to be Produced

24

34

34

34

126

Mackerel
Sandwiches Revenue
Sales (units)
Add: Desired Ending
Inventory
Total Needed

Less: Beginning

Chicken and Cheese

Sandwiches Revenue
Sales (units)
Add: Desired Ending

Less: Beginning

~ 11 ~

Egg Mayo
Sandwiches
Sales (units)

20

33

33

33

119

Inventory

Total Needed

20

33

33

33

119

Inventory

Units to be Produced

20

33

33

33

119

64

100

100

100

364

Add: Desired Ending

Less: Beginning

Total Units to be
Produced

There are several changes made in the amount of sandwiches produced from the
budgeted production in the actual production. For Week 1, we produced 20 units of Mackerel
Sandwiches and Egg Mayo Sandwiches respectively and 24 units of Chicken Cheese
Sandwiches. This made a total of 64 units of sandwiches produced for Week 1 as planned.
But, for Week 2 until Week 4, we reduce the quantities from 200 units as budgeted before to
only 100 units per week. The amount of sandwiches produced per week consists of 33 units
of Mackerel Sandwiches and Egg Mayo Sandwiches respectively and 34 units of Chicken
and Cheese Sandwiches. There is no beginning or ending inventory as the sandwiches will
spoil. In conclusion, the total units produced for the month ending 30th November 2014 are
364 units of sandwiches.

1.3.3 DIRECT MATERIAL BUDGET

~ 12 ~

We Chef Partnership
Direct-MaterialBudget (in units) for the Month Ending 30th November 2014 (budgeted)
Raw Materials
Bread Mackerel Margarine

Cheese

Chicke

Eggs

(Pack) (Can)

Slices

n Ham

(Pack) (Pack)

(Pack)

(Pack)

(Pack)

(Pack)

Mayonnaise

Plastics

Week 1
(64 units to be
produced)

produced)

Production

30

14

10

20

Week 2
(200 units to be
produced)
Week 3
(200 units to be
produced)
Week 4
(200 units to be

Requirements

Add : Desired
Ending
Inventory

~ 13 ~

Total

30

14

10

20

30

14

10

20

Requirements
Deduct :
Expected
Beginning
Inventory
Production
Requirements
(units)

We Chef Partnership
Direct-Material Budget (in units) for the Month Ending 30th November 2014 (Actual)
Raw Materials
Bread Mackerel Margarine

Cheese

Chicke

Eggs

(Pack) (Pack)

Slices

n Ham

(Pack) (Pack)

(Pack)

(Pack)

(Pack)

(Pack)

Mayonnaise

Plastics

Week 1
(64 units to be
produced)

Week 2
(100 units to be
produced)

~ 14 ~

Week 3
(100 units to be
produced)

produced)

Production

21

0
21

0
2

0
2

0
7

0
9

0
6

0
4

0
1

21

Week 4
(100 units to be

Requirements

Add : Desired
Ending
Inventory
Total
Requirements
Deduct :
Expected
Beginning
Inventory
Production
Requirements
(units)

As shown in the schedule, the actual total production requirements for the month are
21 packs of bread, 2 packs of mackerel which consists of two cans of mackerel each, two
packs of 1kg of margarine, 7 packs of cheese slices, 9 packs of chicken ham. Besides, we also

~ 15 ~

need 2 packs of eggs which consist of 10 eggs per pack, one pack of 1 litre of mayonnaise, 2
packs of 50ml mayonnaises and 1 pack of 250ml of mayonnaise. Plus, we also bought 1 pack
of plastics which contain 400 pieces of plastics.

We Chef Partnership
Direct-Material Budget for the Month Ending 30th November 2014 (budgeted)
Anticipated

Weeks

Month

Price (RM)
3.40

3RM3.40

9RM3.40

9RM3.40

9RM3.40

5.70

=RM30.60
4RM5.70

=RM30.60
4RM5.70

=RM30.60
4RM5.70

102.00

Mackerel

=RM10.20
2RM5.70

4.70

=RM11.40
1RM4.70

=RM22.80
-

=RM22.80
-

=RM22.80
-

79.80

Margarine
Cheese

6.00

=RM4.70
1RM6.00

3RM6.00

3RM6.00

3RM6.00

Slices
Chicken

=RM6.00
2RM3.80

=RM18.00
6RM3.80

=RM18.00
6RM3.80

=RM18.00
6RM3.80

60.00

3.80

Ham
Egg

=RM22.80
2RM5.40

=RM22.80
2RM5.40

=RM22.80
1RM5.40

76.00

5.40

=RM7.60
1RM5.40

8.30

=RM5.40
1RM8.30

=RM10.80
-

=RM10.80
-

=RM5.40
-

32.40

Mayonnaise

7.50

=RM8.30
1RM7.50

2RM7.50

2RM7.50

2RM7.50

=RM7.50

=RM15

=RM15

=RM15

RM61.10

RM120

RM120

RM114.60

Bread

Plastics

Total Direct Material

(RM)

4.70

8.30

~ 16 ~

52.50
RM415.70

We Chef Partnership
Direct-Material Budget for the Month Ending 30th November 2014 (Actual)
Weeks

Month
(RM)

Bread

3RM3.35

6RM2.80

5RM2.65

6RM2.80

=RM10.05

=RM16.80

=RM13.25

=RM16.80

59.30

1RM2.40
=RM2.40
Mackerel

RM11.39

RM11.39

22.78

Margarine

RM4.69

RM4.99

9.68

Cheese Slices

RM5.99

RM5.99

3RM5.99

2RM5.99

=RM17.97

=RM11.98

Chicken Ham

41.93

2RM3.79

2RM3.79

3RM3.79

2RM3.79

=RM7.58

=RM7.58

=RM11.37

=RM7.58

34.11

Egg

RM5.39

RM4.29

9.68

Mayonnaise

RM8.29

2RM0.99
=RM1.98
1RM2.99

Plastics

RM7.49

~ 17 ~

=RM2.99
0

13.26
7.49

Total

RM60.87

RM30.37

RM60.67

RM46.32

198.23

1.3.4 PRODUCTION OVERHEAD BUDGET

We Chef Partnership
Production Overhead Budget for Month Ended 30th November 2014 (Budgeted)

Indirect Labor

Week 1
RM20

Rent

Week 2
RM20

Week 3
RM20

Week 4
RM20

Month
RM80

RM21

RM21

RM21

RM21

RM84

We Chef Partnership
Production Overhead Budget for Month Ended 30th November 2014 (Actual)

Rent

Week 1
-

Week 2
-

Week 3
-

Week 4
RM17.10

RM17.10

Month
RM17.10

RM17.10

At We Chef, the actual production overhead cost includes only rent as compared to
the budgeted production overhead cost which includes indirect labor. This is because, after
discussing with the group members, we decided to cut the indirect labor cost due to budget
constraint. Meanwhile, the cost for rent refers to the rent paid for the fridge used to keep the
cheese slices, chicken ham and eggs in the refrigerator at the Business Room and also the
cost of microwave used. The cost of the rent per month is RM17.10 which is paid at Week 4.

~ 18 ~

1.3.5 SELLING AND ADMINISTRATIVE BUDGET

We Chef Partnership
Selling and Administrative Budget for the Month Ending 30th November 2014 (Budgeted)
Week 1
64

Week 2
200

Week 3
200

Week 4
200

Month
664

Variable S&A rate

Variable expense
Fixed S&A expense

RM 0
RM 0

RM 0
RM 0

RM 0
RM 0

RM 0
RM 0

RM 0
RM 0

Transportation

RM10

RM10

RM10

RM10

RM40

Sales in units

Advertising
Total expense
Cash disbursements

2
RM12
RM12

2
RM10
RM10

RM10
RM10

RM10
RM10

RM42
RM42

We Chef Partnership
Selling and Administrative Budget For the Month Ending 30th November 2014 (Actual)
Week 1
64

Week 2
200

Week 3
200

Week 4
200

Month
664

Variable S&A rate

Variable expense
Fixed S&A expense

RM 0
RM 0

RM 0
RM 0

RM 0
RM 0

RM 0
RM 0

RM 0
RM 0

Transportation

RM10

RM10

RM10

RM10

RM40

Sales in units

Advertising
Total expense
Cash disbursements

2
RM12
RM12

2
RM10
RM10

RM10
RM10

RM10
RM10

RM42
RM42

At We Chef, only fixed selling and administrative expenses incurred which are the
transportation and advertising costs. The advertising expense which is amounting to RM2

~ 19 ~

incurs only on Week 1 while the transportation expenses incurs every week from Week 1 until
Week 4 which is RM10 for each week. Thus, for Week 1, the total selling and administrative
expenses is RM12 while for Week 2 until Week 4, the total selling and administrative expense
is RM10 per week. The total selling and administrative expenses for the month ending 30 th
November 2014 is RM42. The only difference between the budgeted and actual selling and
administrative budget is in term of the sales in units which are actually 364 units in total as
compared to the budgeted sales units which is 664 units.
1.3.6 CASH RECEIPT BUDGET
We Chef Partnership
Cash Receipt Budget for the Month Ending 30th November 2014 (Budgeted)
Weeks
1

Month
2

Week 1 Sales Revenue:

Mackerel Sandwiches

RM24.0

Chicken and Cheese

RM24.00

Sandwiches

36.00

Egg Mayo Sandwiches

36.00

Week 2 Sales Revenue:

24.00

Mackerel Sandwiches

24.00

RM81.60

81.60

CheeseSandwiches

99.00

99.00

Egg Mayo Sandwiches

79.20

79.20

Chicken and

Week 3 Sales Revenue:

Mackerel Sandwiches

RM 81.60

Chicken and Cheese

~ 20 ~

81.60

Sandwiches

99.00

99.00

Egg Mayo Sandwiches

79.20

79.20

Week 4 Sales Revenue:

Mackerel Sandwiches

RM81.60

81.60

Sandwiches

99.00

99.00

Egg Mayo Sandwiches

79.20

79.20

RM259.8

RM 863.40

Chicken and Cheese

Total Cash Receipts (RM)

RM84.0

RM259.80

RM259.80

We Chef Partnership
Cash Receipt Budget for the Month Ending 30th November 2014 (Actual)
Weeks
1

Month
2

Week 1 Sales Revenue:

Mackerel Sandwiches

RM24.0

Chicken and Cheese

RM24.00

Sandwiches

36.00

Egg Mayo Sandwiches

36.00

Week 2 Sales Revenue:

24.00

Mackerel Sandwiches

24.00

RM39.60

39.60

CheeseSandwiches

51.00

51.00

Egg Mayo Sandwiches

39.60

39.60

Chicken and

Week 3 Sales Revenue:

~ 21 ~

Mackerel Sandwiches

RM 39.60

39.60

Sandwiches

51.00

51.00

Egg Mayo Sandwiches

39.60

39.60

Chicken and Cheese

Week 4 Sales Revenue:

Mackerel Sandwiches

RM39.60

81.60

Sandwiches

51.00

51.00

Egg Mayo Sandwiches

39.60

39.60

RM130.2

RM 474.60

Chicken and Cheese

Total Cash Receipts (RM)

RM84.0

RM130.20

RM130.20

At We Chef, all sales are on cash. 100% of sales are collected in the week and month
of

sales.

All

customers

paid

during

the

week

and

month

of

sales.

Based on the schedule, the total cash receipt for Week 1 is the same as the budgeted cash
receipts which is RM84. Meanwhile, the total cash receipts for Week 2 until Week 4 is
RM130.20 for each week which differs from the budgeted cash receipts which is RM259.80.
Thus, the actual total cash receipts for the month ending 30th November 2014 is RM474.60
which is also different by RM388.80 from the budgeted cash receipts that is RM863.40.
1.3.7 CASH DISBURSEMENT BUDGET
We Chef Partnership
Cash Disbursement Budget for the Month Ending 30th November 2014 (Budgeted)

Weeks
3

Payment for Direct Material

~ 22 ~

Month
4

Purchases:
Bread

RM10.2

Mackerel

Margarine

11.40

RM30.60

RM30.60

RM30.60

22.80

22.80

22.80

RM102.00
79.80
4.70

Cheese Slices

4.70

18.00

18.00

18.00

60.00

Chicken Ham

6.00

22.80

22.80

22.80

76.00

Eggs

7.60

10.80

10.80

5.40

32.40

Mayonnaise

5.40

Plastics

8.30

15.00

15.00

15.00

8.30
52.50

7.50
Total Cash Disbursement
for Direct Material
Purchases

RM61.1

RM120

RM120

RM114.60 RM415.70

0
Other Cash Disbursement
Direct Labor

RM 2.00

RM 3.00

RM 3.00

21.00

21.00

21.00

Production Overhead

RM 11.00
RM3.00

84.00

21.00

Selling and
Administrative

12.00

10.00

10.00

42.00
10.00

Total Other Cash

Disbursement

RM35.0

RM34.00

RM34.00

Total Cash Disbursements

0
RM96.1

RM154.00

RM154.00

RM137.00
RM34.00
RM148.6
0

~ 23 ~

RM552.70

We Chef Partnership
Cash Disbursement Budget for the Month Ending 30th November 2014 (Actual)

Weeks
3

Month
4

Payment for Direct Material

Purchases:
Bread

RM10.0

Mackerel

Margarine

RM16.80

RM15.65

0
11.39

11.39

RM16.80

RM59.30

22.78

4.99

9.68

Cheese Slices

4.69

5.99

17.97

11.98

41.93

Chicken Ham

5.99

7.58

11.37

7.58

34.11

Eggs

7.58

4.29

9.68

Mayonnaise

5.39

4.97

13.26

Plastics

8.29

7.49

7.49
Total Cash Disbursement
for Direct Material
Purchases

RM60.8

RM30.37

RM60.67

RM46.32

RM198.23

7
Other Cash Disbursement
Direct Labor
Production Overhead

RM 2.00
0

RM 3.00
0

RM 3.00
RM3.00

17.10

17.10

Selling and
Administrative

RM 11.00

12.00

10.00

10.00

42.00
10.00

Total Other Cash

~ 24 ~

Disbursement

RM14.0

Total Cash Disbursements

0
RM74.8

RM13.00
RM43.37

RM13.00
RM73.67

RM70.10
RM30.10
RM76.42

RM268.33

The budgeted cash disbursement budget for We Chef includes the cost for direct
materials, direct labors, production overhead and selling and administrative expenses. The
cash disbursement for Week 1 is RM96.10. Meanwhile, for Week 2 and Week 3, the cash
disbursement is RM154 respectively. For Week 4, the cash disbursement will amount to
RM148.60. Thus, the total cash disbursement for month ending 30 th November 2014 is
expected to be RM552.70.
Meanwhile, the actual cash disbursement budget shows different outcomes. The total
cash disbursement for Week 1 is RM74.87 while for Week 2 it decreases to RM43.37. During
Week 3, it increases to RM73.47 and finally in Week 4 it increases slightly to RM76.42.
Thus, the actual total cash disbursement for month ending 30th November 2014 is RM268.33.

1.3.8 CASH BUDGET

We Chef Partnership
Cash Budget for the Month Ending 30th November 2014 (Budgeted)
Week 1

Week 2

Week 3

~ 25 ~

Week 4

Month

Beginning cash
balance
Add: Cash

RM 100

RM87.90

RM193.70

RM299.50

RM100

259.80

259.80

863.40

RM453.50

RM559.30

RM963.40

Collection
84

259.80

Total Cash
Available

RM184.00

RM347.70

Less: Cash
Disbursements
Cash Available over
Disbursements

(96.10)

(154.00)

RM87.90

RM193.70

(154.00)
RM299.50

(148.60)

(552.70)

RM410.70

RM410.70

We Chef Partnership
Cash Budget for the Month Ending 30th November 2014 (Actual)
Week 1

Week 2

Week 3

Week 4

Month

RM 120

RM129.13

RM215.96

RM272.49

84

130.20

130.20

130.20

474.60

RM259.33

RM346.16

RM402.69

RM594.60

(73.67)

(76.42)

(268.33)

Beginning cash
balance
Add: Cash

RM120

Collection
Total Cash
Available

RM204.00

Less: Cash
Disbursements
Cash Available over
Disbursements

(74.87)
RM129.13

(43.37)
RM215.96

RM272.49

RM326.27

RM326.27

Based on the budgeted cash schedule, the cash available over disbursement for Week
1 is expected to be RM87.90 while for Week 2 it is expected to be RM193.70. For Week 3,

~ 26 ~

the cash available will increase to RM299.50 and continue increasing to RM410.70 in Week
4. Thus, for the month ending 30th November 2014, the total cash available over
disbursements would amount to RM410.70.
However, changes occur in the actual cash budget. Our capital is increased to RM120
due to an addition of a member in the business. The cash available over disbursement for
Week 1 is RM129.13 and the cash available over disbursement for Week 2 is RM215.96.
Meanwhile, for Week 3, the cash available over disbursement is RM272.49 and finally for
Week 4, the cash available over disbursement is RM326.27.Thus, for the month ending 30 th
November 2014, the total cash available over disbursements would amount to RM326.27.
1.3 CVP ANALYSIS
1.3.1 CVP ANALYSIS WITH MULTIPLE PRODUCTS
Description

Selling

Unit Variable

Unit

Units

Price

Cost

Contribution

Produced

Mackerel Sandwiches
Chicken and Cheese Sandwiches

(RM)
1.20
1.50

(RM)
0.50
0.81

Margin (RM)
0.70
0.69

119
126

Egg Mayo Sandwiches

1.20

0.39

0.81

119
364

Description
Mackerel Sandwiches
Chicken and Cheese

Units Produced
119
126

Percentage of Total (%)

32.69
34.62

Sandwiches
Egg Mayo Sandwiches
Total

119
364

32.69
100

1.3.2 WEIGHTED-AVERAGE UNIT CONTRIBUTION MARGIN

~ 27 ~

Description

Contribution Margin

Percentage of Total

Weighted

Mackerel

(RM)
0.70

(%)
32.69

Contribution (RM)
0.23

Sandwiches
Chicken and Cheese

0.69

34.62

0.24

Sandwiches
Egg Mayo

0.81

32.69

0.26

Sandwiches
Weighted-average contribution margin

0.73

1.3.3 BREAK-EVEN ANALYSIS

Break-even point
=

Expenses
WeightedaverageContribution Margin

RM 59.10
RM 0.73

= 80.96
81 combined units of sales
Description

Mackerel Sandwiches
Chicken and Cheese
Sandwiches
Egg Mayo Sandwiches

Breakeven Sales

Percentage of

Individual

Individual

(units)

Total (%)

Sales

Sales (RM)

81

32.69

(units)
26.48

32.40

34.62

27
28.04

42.00

32.69

28
26.48

31.20

81
81

26
Total

81 units

RM105.60

~ 28 ~

Based on the CVP analysis, in order to break-even, We Chef Enterprise must sell 81
units of sandwiches in one month. The individual sales are 27 units of Mackerel Sandwiches,
28 units of Chicken and Cheese Sandwiches and 26 units of Egg Mayo Sandwiches.
Meanwhile, the break-even sales in price will be a total of RM105.60 which is RM32.40 for
Mackerel Sandwiches, RM42.00 for Egg Mayo Sandwiches and RM31.20 for Chicken and
Cheese Sandwiches respectively.
2.0

COMPARATIVE

STATEMENT OF COMPREHENSIVE

INCOME AND

STATEMENT OF FINANCIAL POSITION

2.1 STATEMENT OF COMPREHENSIVE INCOME
We Chef Partnership
Statement of Comprehensive Income for the Month Ending 30th November 2014 (Budgeted)
Sales revenue
Cost of goods sold:

RM863.40

Cost of purchases

~ 29 ~

Direct labor costs

Production overhead costs
Total cost of goods sold

RM415.70
11.00
84.00
(510.70)
RM352.70

Gross margin
Other income and expenses:
Selling and administrative
Expenses

42.00
RM310.70

Net Income
We Chef Partnership

Statement of Comprehensive Income for the Month Ending 30th November 2014 (Actual)
Sales revenue
Cost of goods sold:

RM474.60

Cost of purchases
RM198.23
Direct labor costs
11.00
Production overhead costs
17.10
Total cost of goods sold
(226.33)
RM248.27

Gross margin
Other income and expenses:
Selling and administrative
Expenses

42.00
RM206.27

Net Income

2.2 STATEMENT OF FINANCIAL POSITION

We Chef Partnership

~ 30 ~

Statement of Financial Position as at 30th November 2014 (Budgeted)

RM

RM

ASSET
Cash

410.70
410.70

OWNERS EQUITY
Capital

100.00

Net Income

310.70
410.70

We Chef Partnership
Statement of Financial Position as at 30th November 2014 (Actual)
RM

RM

ASSET
Cash

326.27
326.27

OWNERS EQUITY
Capital

120.00

Net Income

206.27
326.27

3.0 MANAGEMENT REPORT

WE CHEF Partnership has been operationed successfully throughout the whole month of
November. The business which were begun with RM 100 as a modal and got back of RM

~ 31 ~

474.60 at the end of the month. This is considered as a big success to us since we are newbies
in the business area. The feedback that we got from the customers also positive. Most of the
customers said that our sandwiches are tasty and some are repeating their orders. Since we
also collected and delivered the orders while selling the sandwiches on door-to-door basis,
the responds given by the students are pepped and we got a lot of orders from them.
A lot of things happened throughout the four weeks including having some difficulties in
conducting our business on door-to-door basis since we are lack of labor force to cover all of
the rooms in the mahallah. And apart from those dificulties and problems, we also gained and
learned a lot of things as stated below:
1. Each of team members gain the experience of starting and managing a business.
2. Every team members gave their commitments and cooperation in operating the
business starting from buying the raw materials, making the sandwiches, taking
orders and selling the products. Everybody depends on each other to operate the
business smoothly.
3. When there was a problem, the most important thing to do is keep calm. Do not
get panic so that we can identify the problems and sit together with the team
members to find the suitable solution.
There are some recommendations that can be done in the future to ensure the profit
maximization for the successfullness of the:
1. Produce more sandwiches so that the business can cover all of the orders made by
the customers.
2. Sell the sandwiches by taking and delivering orders instead of selling them on
door-to-door basis.
3. Sell the sandwiches during weekdays instead of during weekends since most of
the students go back to their home on weekends.

~ 32 ~

4. Divide the team members to two divisions which are the production division and
marketing and selling divisions. The production divisions take care of making the
sandwiches while the marketing and selling division promote and take orders from
the students.
In conclusion, WE CHEF Partnership is a big success for newbies level in business. We
gained and learned so many things in the process of managing the business. We hope this
business can grow further in the future and be the leading food business that is specialize in
making sandwiches in International Islamic University Malaysia.

4.0 APPENDIX

~ 33 ~

~ 34 ~

~ 35 ~

~ 36 ~

~ 37 ~