Financial

START-UP COSTS
Place Renovation ₱ 5,000.00

Furnitures and furnitures ₱ 3,000.00
Office Supplies for 1 month ₱ 40.00
Store Supplies for 1 month ₱ 10,245.00
Payment for utilities for 5 days ₱ 250.00
Raw Materials for 5 days ₱ 8,175
Equipment and Tools ₱ 3,500
Total Start-Up Cost ₱ 30,210.00
Suggested Initial Investment by Each Partner Total Start−Up Cost

Php 10,070 # of Partners in Busines
PRODUCT COST ESTIMATION

Assumption
This is the daily cost of production. One yield is equivalent to 200 pcs of
cupcakes. Another yield for the drinks will be equivalent to estimated number of
milk tea which is 75.
Two types of cost will be calculated: (1) unit variable cost, and (2) unit
share of operating and other expenses referred to as fixed costs.
UNIT VARIABLE COST

The unit variable cost refers to how much it would cost to manufacture
one unit of the product. This includes the cost of direct materials, direct labor, and
direct overhead.
DIRECT MATERIALS
MATERIALS UNIT COST
All-purpose flour 4 ½ kl ₱ 220
White Sugar 5 kl ₱ 250
Baking Powder 3 pack ₱ 30
Cornstarch 1 pack ₱ 10
Butter 350 g ₱ 100
Eggs 4 dozen ₱ 240
Evaporated milk 2 cans ₱ 60
Brown Sugar 1 kl ₱ 30
Tapioca 1 kl ₱ 95
Tea 2 pack ₱ 60
Fresh Milk 3000 mL ₱ 540
TOTAL ₱ 1,635
The total direct material cost for producing 200 pcs of cupcakes and 75
pcs of milk tea is ₱1635.00. The direct material per unit is ₱2.37.
DIRECT LABOR
No payment for the labor will be made. All efforts will be done by the
owners of the business.
DIRECT OVERHEAD
This is the amount to be spent in the manufacturing overhead (energy,
water, and other utility costs) for every product produced. In this product, the
owners will use a gas tank worth ₱ 780. Or oven nalang na owned?
𝐷𝑖𝑟𝑒𝑐𝑡 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑 = Total factory manufacturing overhead

total number of products produced
𝐷𝑖𝑟𝑒𝑐𝑡 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑 = ₱780

2000 𝑝𝑐𝑠 = ₱ 0.29
Computation for Monthly Production of Cupcake and Milktea

PRODUCT PRODUCTION PER NUMBER OF MONTHLY
DAY DAYS PRODUCTION
Cupcakes 200 20 4000
Milktea 75 20 1500
UNIT SHARE OF FIXED COST

The second type of cost is unit share of fixed cost. Fixed costs are expenses incurred that
are not related to the manufacture of the product.
Expenses
Office Supplies (Monthly)
Supply Qty Unit Total
Cost Cost
Ledger 1 pc ₱30.00 ₱30.00
Notebook 1 pc ₱10.00 ₱10.00
Total ₱40.00
Store Supplies (Monthly)

Supply Qty Unit Cost Total Cost
Paper bag 3 pack ₱15.00 ₱45.00
Cupcake box 400 pcs ₱3.00 ₱1200.00
Cupcake liners 20 pack ₱50.00 ₱1000.00
Plastic cups 1000 pcs ₱8.00 ₱8000.00
Total ₱10,245.00
Utilities
Utility Per day # Days Monthly
Water ₱10.00 20 ₱200.00
Electricity ₱30.00 20 ₱600.00
Total ₱800.00
Transportation
Per Production # Days Monthly
₱20.00 (inside Naga) 20 ₱400.00
₱30.00 (outside Naga) 20 ₱600.00
Tools and Equipment
Tools and
Equipment Qty Unit cost Total Cost
Microwave Oven 1 unit ₱500.00 ₱500.00
Weighing Scale 1 unit ₱300.00 ₱300.00
Total ₱800.00 ₱800.00
Tools/ Kitchen Unit cost TotalCost

Utensils Qty
₱100.00
Mixing Bowl 2 pcs ₱50.00
Trays 2 pcs ₱30.00 ₱60.00
Knife 1 pc ₱30.00 ₱30.00
Measuring Spoon 1 set ₱100.00 ₱100.00
Container 2 pcs ₱100.00 ₱200.00
Spatula 1 pc ₱50.00 ₱50.00
Pot Holder 2 pcs ₱20.00 ₱40.00
Total ₱580.00
The total fixed cost is ₱2, 330.00. The business plans to produce 4000 pcs of puto
every month, each puto will absorb ₱1.67 of fixed costs.
The total unit cost of each puto would be:

Cost Component Amount
Direct Materials ₱2.37
Direct Labor 0
Direct Overhead 0.29
Unit Fixed Cost 1.67
Total ₱4.33
Projected Financial Statements
Projected Income Statement
Assumptions
INCOME
1. The operation of business started on January 01, 2021.
2. Sales is computed by multiplying the monthly production, selling price and,
number of months that the business will operate in a year.
3. The business is projecting sales to increase at 10% in 2019.
4. Cost of Good Sold is computed by multiplying the monthly production,
unit price and, number of months that the business will operate in a year.
5. Cost of Good Sold in 2019 will increase by 5% in 2019.
EXPENSES
1.The different expenses is computed by multiplying the monthly expenses
by the number of months that the business will operate in a year.
2. Utilities Expense, Advertising Expense and Transportaion Expense will increase 10 % in 2022.
3. Office Supplies and Store Supplies will increase 5 % in 2022.
Triple J’s Sweets & Delights
Projected Income Statement 2018 and 2019
2018 2019
Sales ₱ 39,200.00 ₱ 129,360.00
Less:Cost of Sales 24,248.00 76,381.20
Gross Profit ₱ 14,952.00 ₱ 52,978.80
Less: Expenses
Office Supplies ₱ 200.00 ₱ 630.00
Store Supplies 240.00 756.00
Utilities 1,600.00 5,280.00
Transportation 960.00 3,168.00
Miscellaneous 1,880.00 -
Total Expenses ₱ 4,880.00 ₱ 9,834.00
Net Income before taxes ₱ 10,072.00 ₱ 43,144.80

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START-UP COSTS

Place Renovation ₱ 5,000.00

Total Start-Up Cost ₱ 30,210.00

Suggested Initial Investment by Each Partner Total Start−Up Cost

PRODUCT COST ESTIMATION

UNIT VARIABLE COST

𝐷𝑖𝑟𝑒𝑐𝑡 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑 = Total factory manufacturing overhead

𝐷𝑖𝑟𝑒𝑐𝑡 𝑜𝑣𝑒𝑟ℎ𝑒𝑎𝑑 = ₱780

Computation for Monthly Production of Cupcake and Milktea

UNIT SHARE OF FIXED COST

Store Supplies (Monthly)

Tools and Equipment

Tools/ Kitchen Unit cost TotalCost

The total unit cost of each puto would be:

Projected Financial Statements

Projected Income Statement

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