In: Accounting
MASTER BUDGET | ||||
Particulars | Container A | Container B | Computaion of total value | Total value |
Expected sales unit | 500000 | 500000 | (500000/100*90)+(500000/100*130) | 1100000 |
Add:Desired closing stock on December 31 | 5000 | 15000 | ||
Total | 505000 | 515000 | ||
Less:Opening stock on January 1 | 10000 | 20000 | ||
Production units | 495000 | 495000 | Total Sales (A) | 1100000 |
Direct material&Labour requirement per 100 container | ||||
Plastic X( A 30 Kg/B 70 kg) | 148500 | 346500 | (148500+346500)*0.2 =99000 | |
Add:Closing stock (5000kg*0.2) = 1000 | ||||
100000 | ||||
Less :Opening stock(15000kg*0.2) =3000 | ||||
97000 | ||||
Plastic Y (A 20kg /B 30 Kg) | 99000 | 148500 | (99000+148500)*0.1 =24750 | |
Add:Closing stock (10000kg*0.1) = 1000 | ||||
25750 | ||||
Less :Opening stock(5000kg*0.1) =500 | ||||
25250 | ||||
Direct Labour Hour (A-0.25 Hr/B-0.5 Hr) | 1237.5 | 2475 | (1237.5+2475)*12 | 44550 |
Total Direct Cost (B) | 166800 | |||
Manufacturing overhead (Applied based on labour hrs) | ||||
Indirect material 10500 | 3500 | 7000 | Indirect material | 10500 |
Indirect labour 50000 | 16667 | 33333 | Indirect labour | 50000 |
Utilities 25000 | 8333 | 16667 | Utilities | 25000 |
Total manufaturing cost (C ) | 85500 | |||
Property taxes | 18000 | |||
Insurance | 16000 | |||
Depreciation | 29000 | |||
Total fixed cost (D) | 63000 | |||
Salaries | 75000 | |||
Advertising | 15000 | |||
Management salaries | 90000 | |||
Other expense | 30000 | |||
Total selling & administration expense(E) | 210000 | |||
Operating profit A-(B+C+D+E) | 574700 |