Date post: | 06-Jul-2018 |
Category: |
Documents |
Upload: | aniruddha-rantu |
View: | 220 times |
Download: | 0 times |
of 17
8/17/2019 Act202-project final. tea stall.docx
1/17
1
Grou roect
Master Budget of “A Tea
Stall”
8/17/2019 Act202-project final. tea stall.docx
2/17
Spring - 2016
Course: Act-202
Section – 22
Submitted to:
Mr.
Lecturer
Department of Accounting & Finance,
North South University.
Submitted by:
Ashab Abi Sha 1!"#1$%##
M. A'if 'han 1!"1###
Saifur (ahman 1!"11!)##
Aniruha Sen 1"11*!$#
Date+ #%.#!.1$
Table of Content
Serial Contents Page
Numbers1 Introduction 4
2 Letter of Submission 5
8/17/2019 Act202-project final. tea stall.docx
3/17
3 Executive Summar 6
4 Sales Budget 7
5 !roduction Budget 9
6 "irect Materials Budget 10
7 "irect Labor Budget 12
8 Manufacturing #ver$ead Budget 13
9 Ending %inis$ed &oods inventor Budget 14
10 Selling and Administrative Budget 15
11 Cas$ Budget 16
12 Budgeted Income Statement 18
13 Budgeted Balance S$eet 19
14 'eferences 20
Introduction
A-auin ea Sta--/ is one of the most popu-ar tea
sta-- in 0ashunhara (A. 2t is a sma-- business
o3ne by a person name A-auin. 2t is situate
behin Apo--o 4ospita-s near Dutch 0ang-a 0an'5s
6atara 0ranch. After eviction of i--ega- footpath tea
8/17/2019 Act202-project final. tea stall.docx
4/17
sta--s by po-ice this sta-- has become one of the
ma7or tea sta-- in that area. 8veryay a-- most three
hunre peop-e come to this sta-- to rin' tea. he
o3ner open the sta-- at $ a.m. an c-ose it aroun1" a.m. he sta-- is genera--y run by its o3ner an
an emp-oyee 3ho 3or's uner him. A-ong 3ith tea
there biscuits, brea an cigarettes avai-ab-e. As
this sta--s popu-arity is increasing ay by ay some
other tea sta-- o3ners have remove their sta--
from that p-ace. As a resu-t, A-auin ea Sta--/ isoing an e9ce--ent business out there. hat5s 3hy
3e prepare this pro7ect on that on the basis of
that sta--.
Letter of Submission
(especte Sir,
8/17/2019 Act202-project final. tea stall.docx
5/17
2t is been a great p-easure for us to submit this
pro7ect on Master 0ugeting of a sma-- business.
his report has been prepare by a group of !
peop-e as a part of this course. :e have trie ourbest to imp-ement our -earning from this course. 2t
is prepare after oing some research an
gathering information. :e trie to inc-ue a-- the
re;uire information in this report. :e 3ou- -i'e to
than' you for giving us an opportunity to survey,
ana-y
8/17/2019 Act202-project final. tea stall.docx
6/17
number of separate but inepenent bugets that
forma--y -ay out the businesses sa-es, prouction, an
=nancia- goa-s. he master buget cu-minates in a cash
buget, a bugete income statement, an a bugeteba-ance sheet. At =rst, 3e i sa-es buget 3hich
contains the sta--5s e9pecte sa-es. hen, 3e i
prouction buget 3hich contains the number of the
sta--s estimate prouction. After that, 3e prepare the
irect materia-s buget 3hich contains the estimation of
future irect materia-s. hen, 3e i irect -abor buget
3hich sho3s the irect -abor hours re;uire to satisfy the
prouction buget. Later, 3e prepare manufacturing
overhea buget 3hich -ists a-- costs of prouction other
than irect materia-s an irect -abor. hen, 3e
ca-cu-ate the ening =nishe goos inventory buget
3hich gives us a-- the ata to compute unit prouct cost.
After comp-eting that, 3e ca-cu-ate the se--ing an
aministrative buget 3hich gives bugete e9penses for
areas other than manufacturing. hen, 3e prepare the
cash buget, 3hich is compose of four ma7or sections.
After that, 3e prepare the bugete income statement
3hich is 3hich sho3s the revenues, e9penses an
income. At -ast, 3e prepare the bugete ba-ance sheet
3hich estimates the businesses assets -iabi-ities an
stoc'ho-er5s e;uity.
"vervie# of $ster %udget
8/17/2019 Act202-project final. tea stall.docx
7/17
Sales Budget:
he master buget consists of a number of inepenent bugets
that forma--y -ay out the company5s sa-es, prouction an
=nancia- goos. he master buget cu-minates in a cash buget,a bugete income statement an bugete ba-ance sheet.
Sa-es 0uget+ he =rst step in the bugeting process is the
preparation of sa-es buget 3hich is a etai-e scheu-e sho3ing
the e9pecte sa-e for the buget perio. 2n a sa-es buget, 3e get
bugete units sa-es, bugete se--ing price per unit an
accounts receivab-e 3i-- be co--ecte as fo--o3s.
Alauddin Tea StallSales Budget
%or t$e (ear Ended "ecember )*+ ,-*.
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Y
d unit 27000 25000 30000 26000 10
price per 6 6 6 6
ales 162000 150000 180000 156000 64
Ex/ected Cas$ Collection
g A/ 60000 6
ter sales 145800 16200 16
ter sales 135000 15000 15
ter sales 162000 18000 18
8/17/2019 Act202-project final. tea stall.docx
8/17
ter sales 140400 14
s"
n
205800 151200 177000 158400 6#
Cas$ collection from last ear0s fourt$ 1uarter
sales:
1$"###>?#@ 1$"###>1#@
1%####>?#@ 1%####>1#@
1)####>?#@ 1)####>1#@
1%$###>?#@ Unco--ecte fourthB;uarter sa-es 1%$##.
!roduction Budget:
he prouction buget is prepare after the sa-es buget. he
prouction buget -ists the number of units that must beprouce to satisfy the sa-es nees an to provie for the esire
ening =nishe goos inventory.
Alauddin Tea Stall
!roduction Budget
%or t$e (ear Ended "ecember )*+ ,-*.
Quarter 1 Quarter 2 Quarter 3 Quarter 4
d unit 27000 25000 30000 26000 1
units o& 5000 6000 5200 4100
8/17/2019 Act202-project final. tea stall.docx
9/17
eds 32000 31000 35200 30100 1
& B()* 3500 5000 6000 5200
on in units
28500 26000 2#200 24#00 1
3enty percent of ne9t ;uarter5s sa-es. For e9amp-e, the secon
;uarter sa-es are "%### units. herefore the esire ening
inventory of =nishe goos for the =rst ;uarter 3ou- be
"#@>"%### C %### units. he beginning inventory in each
;uarter is the same as the prior ;uarters ening inventory.
"irect Material Budget:
A irect materia-s buget is prepare after the prouction
re;uirements have been compute. his buget etai-s the ra3
materia-s that must be purchase to fu-=-- the prouction buget
an to provie for ae;uate inventories.
Alauddin Tea Stall
"irect Materials Budget
%or t$e (ear Ended "ecember )*+ ,-*.
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Y
,nit
n
28500 26000 2#200 24#00 10
. needed 4 4 4 4
needed 114000 104000 116800 ##600 43
d units '.* 10400 11680 ##60 8500 8
ts o& . 124400 115680 126760 108100 44
& B.* 7200 10400 11680 ##60 7
. to e 117200 105280 115080 #8140 43
8/17/2019 Act202-project final. tea stall.docx
10/17
d
. per unit 05 05 05 05
. to e
d
58600 52640 57540 4#070 2
1#@ of the ne9t ;uarter5s prouction nees. For e9amp-e, the
seconB;uarter prouction nees are 1#!###. herefore, the
esire ening inventory for the 1st ;uarter 3ou- be
1#@>1#!###C1#!##.
Ex/ected Cas$ "istribution
A/- 60000 60000
r purc"ases 2#300 2#300 58600
er purc"ases 26320 26320 52640
er purc"ases 28770 2877# 57540
r purc"ases 24535 24535
"
ent &or
8#300 55620 550#0 53305 253315
Cas$ /aments for last ear0s fourt$21uarter
/urc$ases:
%)$##>%#@ %)$##>%#@
%"$!#>%#@ %"$!#>%#@
%*%!#>%#@ %*%!#>%#@"!%%>%#@. Unpai !th ;uarter purchases.
"irect Labor budget:
8/17/2019 Act202-project final. tea stall.docx
11/17
8/17/2019 Act202-project final. tea stall.docx
12/17
8/17/2019 Act202-project final. tea stall.docx
13/17
oduct cost per cup9 4#4
d &inis"ed goods
:=
units 4100
oduct cost 4#4
dollars 202463
Selling and Administrative Ex/ense Budget:
he se--ing an aministrative e9pense buget -ists the bugete
e9penses for areas other than manufacturing. 2n -arge
organi
8/17/2019 Act202-project final. tea stall.docx
14/17
he cash buget is compose of four ma7or sections+
1 he receipts section.
" he isbursements section. he cash e9cess or e=ciency section.
he =nancing section of the cash buget etai-s the borro3ings
an principa- an interest repayments pro7ecte to ta'e uring
the buget perio. he cash ba-ances at both the beginning an
en of the year may be ae;uate-y even though a serious cash
e=cit occurs at some point uring the year. he isbursementssection of the cash buget inc-ues some types of cash
isbursements. he ening cash ba-ance foe each perio is
compute by ta'ing the e9cess of cash avai-ab-e over
isbursements p-us the tota- =nancing.
Alauddin Tea Stall
Cas$ Budget
%or t$e ear ended "ecember )*+ ,-*.
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Y
cas" alance 350000 243700 142160 56720 35
ceipts
8/17/2019 Act202-project final. tea stall.docx
15/17
tions &ro
stoer
162000 150000 180000 156000 64
" A>ailale 512000 3#3700 322160 212720 ##
urseents
%. 118600 111240 110180 106610 50
% 68400 62400 70080 5#760 26
. 21400 20400 21680 1##60 3
ing and
nistrati>e
5###0 57500 63500 58700 23
"
ents
268300 251540 265440 245030 10
cas"
o>er
ents
243700 142160 56720 +32310 +4
o?ingsAts o& !uarter9
a:ents 80000 8
terest
ancing 80000 8
s" alance 243700 142160 56720 516#0 5
Budgeted Income Statement:
A-- of the revenues an income statement sho3n on the bugete
income statement comes from the in the beginning ba-ancesheet.
Alauddin Tea Stall
Budgeted Income Statement
%or t$e (ear Ended "ecember )*+ ,-*.
Sales 64800
+ ost o& goods sold 32400
)ross .argin 32400
+ Selling and adinistrati>e epenses 20152
@et operating incoe 12248
8/17/2019 Act202-project final. tea stall.docx
16/17
+*nterest epense 17#8
@et incoe 12068
Budgeted Balance S$eet:
he bugete ba-ance sheet is eve-oping using ata from the
ba-ance sheet from the beginning of the buget perio an atacontaine in the various scheu-es.
Alauddin Tea Stall
Budgeted Balance S$eet
"ecember )*+ ,-*.
Assets
urrent assets=
as" 176#0
Accounts recei>ale 46800
a? aterials in>entor: 4250
(inis"ed goods in>entor: 20246
Total current assets
and and e!uipent=
and 20000
'!uipent 5000
@et land and e!uipent
Total assets
iailities=
Accounts pa:ale 1367832
etained earnings 100030868
Total liailities
8/17/2019 Act202-project final. tea stall.docx
17/17
&eferences:
1 A-auin ea Sta--" Manageria- Accounting, 1%th 8ition by Earrison, Noreen an
0re3er. 2nvesotpeia.com