Shojib Mama Tea Stall

Sales Budget

For the year ended December 31, 2017

Quarter

1
2
3
4
Year
Budgeted sales in units
27,000
18,000
21,000
24,000
90,000
Selling price per case

5.00
5.00

5.00

5.00

5.00
Total sales
135,000
90,000
105,000

120,000
450,000

Percentage of sales collected in the period of the sale

100%

Schedule of expected cash collections

Acccounts Receivable, Beginning Balance 1

$0

$0
First quarter sales
135,000
$0

135,000

Second quarter sales

90,000
0

90,000
Third quarter sales

105,000
$0
105,000
Fourth quarter sales

120,000
120,000
Total Cash collections
135,000

90,000
105,000
120,000
450,000

** Budgeted sales =300*30*3=27000 (1st qtr)

** 200*30*3=18000 (2nd)

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Shojib Mama Tea Stall

Production Budget
For the Year Ended December 31, 2017

Quarter

1
2
3
4
Year

Bugeted sales (unit)

27,000
18,000
21,000
24,000
90,000

(Add) Desired ending inventory of finished goods

Total needs
27,000
18,000
21,000
24,000
90,000

(Less) beginning inventory of finished goods

0
0
0
0
0

Required Production
27,000
18,000
21,000
24,000
90,000

4|Page

Shojib Mama Tea Stall

Direct Materials Budget ( Sugar)

For the Year Ended December 31, 2017

Quarter

1
2
3
4
Year
Required production (unit)
27,000
18,000
21,000
24,000
90,000
Raw materials needed per cup ( table of spoon )
1
1
1
1
1
Production needs(pounds)

27,000
18,000
21,000
24,000
90,000

(Add) Desired ending inventory of raw materials (2%)

360
420
480
500
500
Total needs

27,360
18,420
21,480
24,500
90,500
(Less) beginning inventory of raw materials ( table of spoon)
300
360
420
480
300
Raw materials to be purchased
27,060
18,060
21,060
24,020
90,200
Cost of raw materials per pounds

0.60

0.60

0.60

0.60

0.60
Cost of raw materials to be purchased
16,236

10,836

12,636

14,412

54,120

**desired ending inventory =18000*2%=360

** 21000*2% = 420

** 24000*2% =480
n Fourth quarter we assumed 500tk as ending inventory

We assumed 300tk as begining inventory

5|Page

Shojib Mama Tea Stall

Direct Materials Budget ( Milk)

For the Year Ended December 31, 2017

Quarter

1
2
3
4

Year
Required production unit
27,000
18,000
21,000
24,000
90,000
Raw materials needed per cup (table of spoon)
2
2
2
2
2
Production needs(pounds)
54,000
36,000
42,000
48,000
180,000

(Add) Desired ending inventory of raw materials (2%)

720
840
960
1,000
1,000
Total needs
54,720
36,840
42,960
49,000
181,000
(Less) beginning inventory of raw materials ( table of spoon)
800

720
840
960
800
Raw materials to be purchased
53,920
36,120
42,120
48,040
180,200
Cost of raw materials per pounds

1.04

1.04

1.04

1.04

1.04
Cost of raw materials to be purchased
56,077

37,565

43,805

49,962

 187,408

**desired ending inventory =36000*2%=720

** 42000*2% = 840

** 48000*2% = 960
In Fourth quarter we assumed 1000tk as ending inventory

We assumed 800tk as beginning inventory

6|Page

Shojib Mama Tea Stall

Direct Materials Budget ( Tea)

For the Year Ended December 31,2017

Quarter

1
2

3
4
Year
Required production unit
27,000
18,000
21,000
24,000
90,000
Raw materials needed per cup (table of spoon)
1
1
1
1
1
Production needs(pounds)
27,000
18,000
21,000
24,000

90,000

Add desired ending inventory of raw materials (5%)

900
1,050
1,200
1,000
1,000
Total needs
27,900
19,050
22,200
25,000

91,000
(Less) beginning inventory of raw materials ( table of spoon)
1,000
900
1,050
1,200
1,000
Raw materials to be purchased
26,900
18,150
21,150
23,800
90,000
Cost of raw materials per pounds

0.20

0.20

0.20

0.20

0.20
Cost of raw materials to be purchased

5,380

3,630

4,230

4,760

18,000

**desired ending inventory =18000*5%=900

** 21000*2% = 1050

** 24000*2% =1200
in fourth quarter we assumed 1000tk as ending inventory

we assumed 1000tk as beginning inventory

7|Page

Shojib Mama Tea Stall

Direct Materials Budget ( water)

For the Year Ended December 31, 2017

Quarter

1
2
3
4
Year
Required production unit
27,000
18,000
21,000
24,000
90,000
Raw materials needed per cup

0.1
0.1
0.1
0.1
0.1
Production needs(pounds)
2,700
1,800
2,100
2,400
9,000

(Add) desired ending inventory of raw materials

0
0
0
0
0
Total needs
2,700
1,800
2,100
2,400
9,000
(Less) beginning inventory of raw materials ( table of spoon)
0
0
0
0
0
Raw materials to be purchased

2,700
1,800
2,100
2,400
9,000
Cost of raw materials per pounds

0.25

0.25

0.25

0.25

0.25
Cost of raw materials to be purchased
675.00

450.00

525.00
600.00

2,250

Shojib Mama Tea Stall

Total cost of raw materials

Quarter

1
2

3
4
Year

Sugar
16236
10836
12636
14412
54120

Milk
56077
37565
43805
49962
187409

Tea
5380
3630
4170
4730
17910

Water
675
450
525
600
2250

Total
78368
52481
61136
69704
261689

8|Page

Shojib Mama Tea Stall

Schedule of Expected Cash Disbersments for Materials

Accounts payable, beginning balance

$0

First Quarter purchases

78368
$0

78,368

Secound quarter purchases

52,481
$0

52,481

Third quarter purchases

61,136
0
61,136

Fourth quarter purchases

69,704
69,704

Total cash disbersments for materials

$78,368
$52,481
$61,136
$69,704
261,689

Shojib Mama Tea Stall

Direct Labour Budget

For the Year Ended December 31,2017

Quarter

1
2
3
4
Year

Required production in cases

27,000
18,000
21,000
24,000
90,000
Direct labour- hour per cup
0.04
0.04
0.04
0.04
0.04
Total direct labour -hours needed
1,080
720
840

960
3,600
Direct labour cost per hour

11.11

11.11

11.11

11.11

11.11
Total direct labour cost*

11,999
7,999
9,332
10,666
39,996

** Direct labour hour per cup

* Cost of one worker 4000tk/mont

12hr/300cup=.04
Per day salary 4000/30=133.33

Per hour salary 133.33/=11.1

Per cup salary 133.33/300=.44

9|Page

Shojib Mama Tea Stall

Manufacturaing Overhead Budget

For the Year Ended Dcember 31, 2017

Quarter

1
2
3
4
Year
Budget direct labor labor-hours

1,080
1,080
1,080
1,080
4,320
Variable manufacturing overhead rate

8.33

8.33

8.33

8.33
8
Variable manufacturing overhead

8,996.40
8,996.40
8,996.40
8,996.40
35,985.60
Fixed manufacturing overhead

11,200
11,200
11,200
11,200
44,800
Total manufacturing overhead

20,196

20,196
20,196
20,196
80,786
(Less) depreciation

100
100
100
100
400
cash disbursement for manufacturing
20,096.40
20,096.40
20,096.40
20,096.40
80,385.60

** budgeted labour hour per quart

** variable MOH rate
** fixed moh

12*30*3=1080
1 cylinder of gas costs 1400
tea cup 12pcs=400

one cylindr goes 14 days

katley 2pcs =600

per day cost 1400/14=100

spoon 6 pcs =200

per hour cost 100/12 = 8.33

rent=10000

total =11200

Total manufacturing overhead

80,786.00
Budgeted direct labour- hours

4,320
Predetermined overhead rate for the year

18.70

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Shojib Mama Tea Stall

Selling and Administrative Expense Budget

For the Year Ended Dcember 31, 2017

Quarter

1
2

3
4
Year
Budgetd sales in cases
27,000
18,000
21,000
24,000
90,000
Variable selling and administrative expense per case

Variable selling and administrative expense


Fixed selling and administrative expense:

Advertising
125
125
125
125
500
Comission
3,000
3,000
3,000
3,000
12,000

Depreciation
-125
-125
-125
-125
-500
Total selling and administrative expenses
3,000
3,000
3,000
3,000
12,000
(Less) depreciation
125
125
125
125
500
Cash disbersment for selling and administrative expenses
2,875

 2,875
2,875
2,875
11,500

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Shojib Mama Tea Stall

Cash Budget

For the year ended December 31st, 2017

Quarter

1
2
3
4
Year
Cash Balance , beginning
$20,000
$41,462
$47,430
$88,921
$110,494
(Add) Cash Collection

Collections from customers

135,000
90,000
105,000
120,000
450,000
Total Cash Avalable
155,000
131,462
152,430
208,921
560,494
Less disbursements:

Direct materials
78368
52481
61136
69704
261689
Direct Labor
11,999
7,999
9,332
10,666
39,996
Manufacturing Overhead
20096.4
20096.4
20096.4
20096.4
80385.6
Selling and administrative
2875
2875
2875
2875
11500
Equipment purchases
200
200
200
200
800
Total disbusements

113,538
83,652
93,640
103,541
394,371

41,462
47,810
58,790
105,380
166,123

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Shojib Mama Tea Stall

Budgeted Income Statement

For the year ended in December 31st 2017

Sales (90000*5)
450000
(Less) Cost of Goods Sold

DM (.6+1.04+.2+.25)
2.09

DL
0.44

MOH
0.33

Total Cost of Goods Sold

2.86
90000*2.86
257400

Gross Margin
192600
(Less) Selling and Admin Expense
11500
Net operating income
181100

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Shojib Mama Tea Stall

Balance sheet

For the year ended Dec 2017

ASSETS:

Cash

166123
Raw material inventory
1540

167663
Liabilities:

Owner's equity

167663

** Raw material inventory

Sugar
500*0.6=300

Milk
1000*1.04=1040

Tea
1000*.2=200

Total
1540

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REFERENCCES

Mojammel Haque Shojib, Shojib Mama, Mohammadpur

Managerial Accounting Written by Garrison, Noreen, Brewer, Edition: 15

Online journal, Business Insider.

th

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