ACT202.
1 Group Project - Fall'20 Iftear Ahmed Chowdhury (
Mushfiqur Rahman - 1912743030 ; Prapty Mehzabin Zakar
Sales Budget
Q1 Q2
Budgeted Sales in unit 3,528 3,567.20
Selling price per unit (Tk) 12 12
Total budgeted sales (Tk) 42,336 42,806
Production Budget
Q1 Q2
Budgeted Sales 3,528 3,567.20
Add: Desired Ending inv. 243 243
Total needs 3,771 3,810
Less: Beginning inv. 150 243
Required Production 3,621 3,567
Desired Ending Inventory
Jan. Feb.
Budgeted Sales 1,215 1,098
Desired ending inv. (20%) 0.2 0.2
Desired Ending inv. 243.04 219.52
Direct Material
Q1 Q2
Budgeted sales 3,528 3,567.20
Material per unit 5.25 5.25
Production needs 18,522 18,728
Add: Desired ending inv. 1275.96 1275.96
Total needed 19,798 20,004
Less: Beginning inv. 788 1,276
Materials to be purchased 19,010 18,728
Cost per pound of material 1.1 1.1
Budgeted cost of material (tk) 20,912 20,601
Labor budget
Q1 Q2
Units of production 3,528 3,567.20
Direct Labour per unit 0.03 0.03
Labour Hour Required 105.84 107.016
Guaranteed labour hours 100 100
Labour hours paid 106 107
Hourly wage rate 10.8 10.8
Total direct labour cost 1143 1156
Manufacturing over head
Q1 Q2
Budgeted DLH 106 107
Variable mfg.OH rate 20 20
Variable mfg.OH cost 2116.8 2140.32
Fixed moh cost 1000 1000
Total moh costs 3116.8 3140.32
Less non cash cost 200 200
Cash disbursements for moh 2916.8 2940.32
Selling and Administrative Cost
Q1 Q2
Budgeted Sales 3,528 3,567.20
Variable S/A rate 0.2 0.2
Variable S/A in units 705.6 713.44
Fixed S/A exp. 1768 1768
Total S/A exp 2473.6 2481.44
Less noncash Exp 180 180
Cash S/A exp 2293.6 2301.44
Cash Budget
Q1 Q2
Beg. Cash bal. 15000 26939.898
Cash Collection from budgeted sells 42336 42806.4
Total Cash Available 57336 69746.298
Less: Cash disburnsements materials 20912 20601
DL 1143.072 1155.7728
MOH 2916.8 2940.32
S/A 2293.6 2301.44
Excess 30071 42748
Financing
Ending Cash Balance 30071 42748
ear Ahmed Chowdhury (IAC)
pty Mehzabin Zakaria - 1911081030
dget
Q3 Q4 Year
3,606.40 3,606.40 14,308
12 12 12
43,277 43,277 171,696
Budget
Q3 Q4 Year
The ending inventory will be equal of 20% of th
3,606.40 3,606.40 14,308 sales in units.
243 410 410 Assume that on 31st Dec. 2018, 150 units were
3,849 4,016 14,718 hand on Dec. 31, 20
243 243 150
3,606 3,773 14,568
ing Inventory
Mar. Apr. May June July Aug. Sep. Oct.
1,176 1,215 1,215 1,176 1,215 1,215 1,176 1,215
0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
235.2 243 243.04 235.2 243.04 243.04 235.2 243.04
erial
Q3 Q4 Year
3,606.40 3,606.40 14,308
5.25 5.25 5.25 Assuming that material per unit is 5.25 pound as
18,934 18,934 75,117 10% of the following months production needs.
1275.96 2152.5 2152.5 paid 1 tk p
20,210 21,086 77,270 From the question, material cost increased by 1
1,276 1,276 788
18,934 19,810 76,482
1.1 1.1 1.1
20,827 21,791 84,130
dget
Q3 Q4 Year
3,606.40 3,606.40 14,308
0.03 0.03 0.03
108.192 108.192 429.24 Assuming each unit of product require
100 100 400 200 hours per quarter. Wage rate 10 t
108 108 429 now the w
10.8 10.8 10.8
1168 1168 4636
over head
Q3 Q4 Final
108 108 429
20 20 20
2163.84 2163.84 8584.8
Assumption: variable MOH is 20 taka, fixed moh i
1000 1000 4000 and depriciation cost is 200 per quarte
3163.84 3163.84 12584.8
200 200 800
2963.84 2963.84 11784.8
ministrative Cost
Q3 Q4 Year
3,606.40 3,606.40 14,308
0.2 0.2 0.2
721.28 721.28 2861.6 Assumption: variable s/a is 0.2/unit, fixed s/a i
comission and rent expenses are monthly, so we
1768 1768 7072 cost.
2489.28 2489.28 9933.6
180 180 720
2309.28 2309.28 9213.6
Budget
Q3 Q4
39497.3492 52270.8756
43276.8 43276.8
82774.1492 95547.6756
20827 21791 Assumption: No financing is needed and 15000 i
1168.4736 1168.4736 by cash.
2963.84 2963.84
2309.28 2309.28
55506 67315
55506 67315
ory will be equal of 20% of the following month’s budgeted
sales in units.
st Dec. 2018, 150 units were on hand and 410 units were on
hand on Dec. 31, 2019.
Nov. Dec.
1,176 1,215
0.2 0.2
235.2 410
erial per unit is 5.25 pound as it is not given in the question. Desired ending inventory will be
ng months production needs. Ending inventory at Dec 31st, 2018 was 2500. Also, assuming I
paid 1 tk per pound of its material.
n, material cost increased by 10% every year, so material cost per pound would be 1.1 tk in
2019.
g each unit of product requires 0.03hrs. of direct labour. Labour will be paid for a minimum
rs per quarter. Wage rate 10 tk per hour. From the ques, as it is increased by 8% per year so
now the wage rate will be 10.8 tk per hour.
e MOH is 20 taka, fixed moh is 1000 taka
iciation cost is 200 per quarter
able s/a is 0.2/unit, fixed s/a is 1700*1.04. as utility, police
t expenses are monthly, so we counted them as fixed period
cost.
ancing is needed and 15000 in hand, all products are bought
by cash.
Sales Budget
Q1 Q2 Q3 Q4
Budgeted sales in unit 3,960 910 1,840 3,680
Selling price per unit (tk) 14.4 14.4 14.4 14.4
Total budgeted sales (tk) 57,024 13,104 26,496 52,992
Production Budget
Q1 Q2 Q3 Q4
Budgeted sales in unit 3,960 910 1,840 3,680
Add: Desired ending inv. 60 124 248 250
Total needs 4,020 1,034 2,088 3,930
Less: Beginning inv. 410 60 124 248
Required production 3,610 974 1,964 3,682
Desired Ending Inventory
Jan. Feb. Mar. Apr.
Budgeted Sales 1,364 1,232 1,364 300
Desired ending inv. (20%) 0.2 0.2 0.2 0.2
Desired Ending inv. 272.8 246.4 272.8 60
Production Budget
Q1 Q2 Q3 Q4
Budgeted sales 3,960 910 1,840 3,680
Material per unit 5.25 5.25 5.25 5.25
Production needs 20790 4777.5 9660 19320
Add: Desired ending inv. 315 651 1302 1312.5
Total needed 21105 5428.5 10962 20632.5
Less: Beginning inv. 2152.5 315 651 1302
Materials to be purchased 18952.5 5113.5 10311 19330.5
Cost per pound of material 1.21 1.21 1.21 1.21
Budgeted cost of material (tk) 22933 6187 12476 23390
Labor Budget
Q1 Q2 Q3 Q4
Units of production 3,960 910 1,840 3,680
Direct Labour per unit 0.03 0.03 0.03 0.03
Labour Hour Required 118.8 27.3 55.2 110.4
Guaranteed labour hours 100 30 60 100
Labour hours paid 119 30 60 110
Hourly wage rate 11.66 11.66 11.66 11.66
Total direct labour cost 1385 350 700 1287
Manufacturing Overhead
Q1 Q2 Q3 Q4
Budgeted DLH 119 30 60 110
Variable mfg.OH rate 22 22 22 22
Variable mfg.OH cost 2613.6 660 1320 2428.8
Fixed moh cost 1120 1120 1120 1120
Total moh costs 3733.6 1780 2440 3548.8
Less non cash cost 200 200 200 200
Cash disbursements for moh 3533.6 1580 2240 3348.8
Selling and Administrative
Q1 Q2 Q3 Q4
Budgeted Sales 3,960 910 1,840 3,680
Variable S/A rate 0.2 1.5 1.5 1.5
Variable S/A in units 792 1365 2760 5520
Fixed S/A exp. 1839 1945 1945 1945
Total S/A exp 2631 3310 4705 7465
Less noncash Exp 180 180 180 180
Cash S/A exp 2451 3130 4525 7285
Cash Budget
Q1 Q2 Q3 Q4
Beg. Cash bal. 67315 94037 95894 102449
Cash Collection from budgeted
57024 13104 26496 52992
sells
Total Cash Available 124339 107140.67 122390 155441
Less: Cash disburnsements
22933 6187 12476 23390
materials
DL 1385.208 349.8 699.6 1287.264
MOH 3533.6 1580 2240 3348.8
S/A 2451 3130 4525 7285
Excess 94037 95894 102449 120130
Financing
Ending Cash Balance 94037 95894 102449 120130
Year
10,390
14.4 for q1 the sales was increasing at 12% which means avg. per day sales was 44 as there w
locked down so volume had a sharp fall and the average becomes 10 per day and after q2
149,616 and q4. As the situation was normal in q1, we can say that the pric of
Year
10,390
250 Assuming the ending inventory will be equal of 20% of the following months b
10,640 assuming 250 was in hand at
410
10,230
May June July Aug. Sep. Oct. Nov. Dec.
310 300 620 620 600 1,240 1,200 1,240
0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2
62 60 124 124 120 248 240 410
Year
10,390
5.25
54547.5
1312.5 Price has increase normally without any fluctuatuions in
55860
2152.5
53707.5
1.21
64986
Year
10,390
0.03
311.7 Assuming that labor wage increased normally but guarante
290
319
11.66
3722
Final
319
22
7022.4 Assumption: variable cost increases by 10%, fixed moh
4480 increases by 12% taka and depriciation cost is 200 per
11502.4 quarter
800
10702.4
Year
10,390
10437 variable and fixed s/a increases sharply for the additional cost of sa
7674 quarter 1 varible cost didn’t increase but from q2 it has been 1.5 whic
18111 the fixed cost in q1 it has increased for 4% only but for the last 3 quar
720
17391
Assumption: No financing is needed and 67315 in hand fro
products are bought by cash.
er day sales was 44 as there was no lock down but in q2 the whole country was
omes 10 per day and after q2 the volume again rises for 100% consecutively in q3
q1, we can say that the pric of a cp of tea increased normally.
20% of the following months budgeted sales in unit and in 2019 the ending inventory was 410. Also
assuming 250 was in hand at the end of the year.
y without any fluctuatuions in january and didn’t decrease.
reased normally but guaranted hours had fluctuations during lockdown
y 10%, fixed moh
on cost is 200 per
ply for the additional cost of sanitiization from quarter 2. in
ut from q2 it has been 1.5 which is a dramatic increment. For
4% only but for the last 3 quarters it had a increment of 10%.
needed and 67315 in hand from previous year, all
ducts are bought by cash.
