Team SP

Capisnon, Daniela Marie P.

Durens, Judith
BSA - 2, Nonblock
Accounting 202 – 3120

Final Output

1. Sales Budget

Q1 Q2 Q3 Q4 Year
2021

Sales (units) 2,100 1,800 1,500 3,000

Add: 15% 0 270 0 450

Forecasted
Increase for Q2 Q4

Total Forecasted 2,100 2,070 1,500 3,450 9,120

Sales (units)

Selling Price/Unit 90 90 90 90

Total budgeted 189,000 186,300 135,000 310,500 820,800

Sales
2. Production Budget

Q1 Q2 Q3 Q4 Total

Sales (units) 2,100 1,800 1,500 3,000

Add: 15% Forecasted Increase 0 270 0 450

for Q2 And Q4

Total Forecasted Sales (Units) 2,100 2,070 1,500 3,450

Planned Finished Goods, 540 450 900 600

Ending Inventory (30% of Next
Quarter's Budgeted Sales)

Total Production Required 2,640 2,520 2,400 4,050

Finished Goods, Beginning -630 -540 -450 -900

Inventory (30% of Current
Quarter's Budgeted Sales)

Products to be Manufactured 2,010 1,980 1,950 3,150 9,090

 3. Raw Material Purchases Budget

Cocoa Silica Nylon Glycol Total Per

12 Quarter

Quarter Direct Material Used 2 3 1 1

Per Finished Goods
Production
Requirement

Q1 2,010 4,020 6,030 2,010 2,010 14,070

Q2 1,980 3,960 5,940 1,980 1,980 13,860

Q3 1,950 3,900 5,850 1,950 1,950 13,650

Q4 3,150 6,300 9,450 3,150 3,150 22,050

Per Direct Material 18,180 27,270 9,090 9,090 63,630

Classification

Q1 Planned Direct 1,206 1,809 603 603 4,221

Materials, Ending (30%
Current Quarter's
Q2 Production 1,188 1,782 594 594 4,158
Requirement)
Q3 1,170 1,755 585 585 4,095

Q4 1,890 2,835 945 945 6,615

Direct Materials 23,634 35,451 11,817 11,817 82,719

Needed
 Q1 Ending Raw Materials -1,000 -2,500 -300 -100 -3,900
Inventory

Q2 -1,206 -1,809 -603 -603 -4,221

Q3 -1,188 -1,782 -594 -594 -4,158

Q4 -1,890 -2,835 -945 -945 -6,615

Required Material 18,350 26,525 9,375 9,575 63,825

Purchases Per Product
Classification (In Units)

COST PER UNIT 2 4 3 1

Required Material $36,700 $106,100 $28,125 $9,575 $180,500

Purchases Per
Product
Classification (In
Amount)

4. Direct Labor Budget

  Q1 Q2 Q3 Q4 Total

Products to be Manufactured 2,010 1,980 1,950 3,150

Direct Labor Hours Needed Per Unit 4 4 4 4

Total Direct Labor Hours  8,040 7,920 7,800 12,600

Rate Per Hour 5 5 5 5

Budgeted Direct Labor Costs 40,200 39,600 39,000 63,000 181,800

 5. Factory Overhead Budget

  Q1 Q2 Q3 Q4 Total

Products To Be Manufactured 2,010 1,980 1,950 3,150

Budgeted Direct Labor Hours 40,200 39,600 39,000 63,000

Variable Overhead

Factory Supplier @ 4 Per Unit 8,040 7,920 7,800 12,600

Electricity @ .60 Per Hour 24,120 23,760 23,400 37,800

Repairs and Maintenance @2 4,020 3,960 3,900 6,300

Per Unit

Total Budgeted Variable 36,180 35,640 35,100 56,700 163,620

Overhead

Fixed Overhead

Repairs And Maintenance 3,000 3,000 3,000 3,000

Indirect Labor 5,000 5,000 5,000 5,000

Property Taxes 2,000 2,000 2,000 2,000

Insurance 1,800 1,800 1,800 1,800

Depreciation 3,000 3,000 3,000 3,000

Total Budgeted Fixed 14,800 14,800 14,800 14,800 59,200

Overhead

Total Budgeted Factory 50,980 50,440 49,900 71,500 222,820

Overhead

         
 6. Operating Expense Budget

  Q1 Q2 Q3 Q4 Total

Total Budgeted Sales (In Amount) 189,000 186,300 135,000 310,500

Variable Operating Expenses

Selling: Commission @ 5% Of 9,450 9,315 6,750 15,525

Sales

Admin: Utilities @ 2% Of Sales 3,780 3,726 2,700 6,210

Total Variable Operating Expenses 13,230 13,041 9,450 21,735

Fixed Operating Expenses

Selling: Salaries 22,500 22,500 22,500 22,500

Selling: Supplies 10,000 10,000 10,000 10,000

Selling: Depreciation 12,350 12,350 12,350 12,350

Admin: Salaries 17,580 17,580 17,580 17,580

Total Fixed Operating Expenses 62,430 62,430 62,430 62,430

Total Budgeted Operating 75,660 75,471 71,880 84,165 307,176

Expenses
 7. Cash Budget

  Q1 Q2 Q3 Q4 Total

Total Budgeted Sales (In Amount) 189,000 186,30 135,000 310,500

0

Cash Collections

40% Cash Sales 75,600 74,520 54,000 124,200

30% Credit Sales Collection 56,700 55,890 40,500 93,150

30% Credit Sales Collection - 45,000 56,700 55,890 40,500

Remaining

Total Budgeted Cash Collections 177,300 187,11 150,390 257,850 772,650

0

8. Payback period (2 decimal places)

 Initial Investment   =  160,000    

    Remaining investment to be  Year 

recovered

 Cash Inflows - 2022   =  42,000 118,000 1

 Cash Inflows - 2023   =  50,000 68,000 1

 Cash Inflows - 2024   =  85,000 - 0.80

 Cash Inflows - 2025   =  100,000

 Total Cash Inflow   =  277,000 2.80

 9. Net Present Value Method

Year Flow Present Value Formula Amount= Pv X

@10% Cost Of Flows
Capital

0 -    1 = (1.1) ^0 -   160,000.00
160,000.00

1 42,000.00 0.909090909 = (1.1) ^1 38,181.82

2 50,000.00 0.826446281 = (1.1) ^2 41,322.31

3 85,000.00 0.751314801 = (1.1) ^3 63,861.76

4 100,000.00 0.683013455 = (1.1) ^4 68,301.35

4- 30,000.00 0.683013455 = (1.1) ^4 20,490.40

Salvage
Value

72,157.64

10. Profitability Index (2 decimal places)

Year Flow Present Value @10% Cost Of Formula Amount= Pv X

Capital Flows

1 42,000.00 0.909090909 =(1.1)^1 38,181.82

2 50,000.00 0.826446281 =(1.1)^2 41,322.31

3 85,000.00 0.751314801 =(1.1)^3 63,861.76

4 100,000.00 0.683013455 =(1.1)^4 68,301.35

4 - Salvage 30,000.00 0.683013455 =(1.1)^4 20,490.40

Value

  Present Value Of Future Cash 232,157.64

Flows

  Initial Investment 160,000.00

 
  Profitability Index 1.45
11. Present Value Payback Method (2 decimal places)

Year Flow Present Value Formula Amount= Pv Cumulative

@10% Cost X Flows
Of Capital

0 - 160,000.0 1 = (1.1) ^0 -   160,000.00 -  160,000.00

0

1 42,000.00 0.909090909 = (1.1) ^1 38,181.82 -  121,818.18

2 50,000.00 0.826446281 = (1.1) ^2 41,322.31 -     80,495.87

3 85,000.00 0.751314801 =(1.1) ^3 63,861.76 -     16,634.11

4 100,000.00 0.683013455 = (1.1) ^4 68,301.35 51,667.24

4- 30,000.00 0.683013455 = (1.1) ^4 20,490.40 72,157.64

Salvage
Value

Absolute Cumulative Amount At Year 3 16,634.11

Divided By Year 4 Discounted Cash Flow 68,301.35

0.24

Years Lapsed Before Capital Recovery 3

3.24