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    Stylistic Furniture

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    Jaideep Chauhan
    1. The document provides budgets for total revenue, costs of goods sold, manufacturing overheads, selling and distribution expenses, and net profit for two product lines - Casual and Deluxe. 2. Key figures include total revenue budget of $384 million, cost of goods sold of $250.95 million, operating expenses of $77.8 million, and projected net profit of $36.47 million. 3. Manufacturing budgets are provided for direct materials, direct labour, variable and fixed overhead costs, and set up costs. Inventory levels and production quantities are also projected.

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    Stylistic Furniture

    Uploaded by

    Jaideep Chauhan
    145 views6 pages
    1. The document provides budgets for total revenue, costs of goods sold, manufacturing overheads, selling and distribution expenses, and net profit for two product lines - Casual and Deluxe. 2. Key figures include total revenue budget of $384 million, cost of goods sold of $250.95 million, operating expenses of $77.8 million, and projected net profit of $36.47 million. 3. Manufacturing budgets are provided for direct materials, direct labour, variable and fixed overhead costs, and set up costs. Inventory levels and production quantities are also projected.

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    Solution of accounting problem

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    1. The document provides budgets for total revenue, costs of goods sold, manufacturing overheads, selling and distribution expenses, and net profit for two product lines - Casual and Deluxe. 2. Key figures include total revenue budget of $384 million, cost of goods sold of $250.95 million, operating expenses of $77.8 million, and projected net profit of $36.47 million. 3. Manufacturing budgets are provided for direct materials, direct labour, variable and fixed overhead costs, and set up costs. Inventory levels and production quantities are also projected.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    145 views6 pages

    Stylistic Furniture

    Uploaded by

    Jaideep Chauhan
    1. The document provides budgets for total revenue, costs of goods sold, manufacturing overheads, selling and distribution expenses, and net profit for two product lines - Casual and Deluxe. 2. Key figures include total revenue budget of $384 million, cost of goods sold of $250.95 million, operating expenses of $77.8 million, and projected net profit of $36.47 million. 3. Manufacturing budgets are provided for direct materials, direct labour, variable and fixed overhead costs, and set up costs. Inventory levels and production quantities are also projected.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    of 6

    Total Revenue Units Rate Manufacturing

    Deluxe 12,000 8,000 Supplies 15,000,000


    Casual 48,000 6,000 Indirect Labour (Fixed) 16,800,000
    Power (Fixed) 6,300,000
    Power (Variable) 21,000,000
    Casual Deluxe Maintenance 16,800,000
    Red Oak 12 12 Depreciation (Fixed) 10,200,000
    Granite 6 8 Supervision (Fixed) 3,900,000
    Direct Labour hours 4 6
    Set Up hours 10 12 Fixed Promotion Expenses 15,960,000
    Production per batch 50 40 Variable Distribution cost per cf 20
    Size of Casuals in Cf 18
    Size of Deluxe in Cf 20
    Raw Material Inventory Salary to Sales & Distribution Personnel 12,000,000
    Red Oak 70,000 70 Sales Commission (Variable) 0.065
    Granite 60,000 94

    Finish Goods Inventory


    Casual Delux
    Value 3,840,000 2,620,000
    Units 1,000 500
    Per Unit cost 3,840 5,240

    Direct Labour (Hours) 4 6


    Rate per hour (Rs) 100 100
    Set Up
    3,900,000
    8,400,000
    270,000
    900,000

    6,030,000
    10,500,000
    1. Revenue Budget
    Item Unit Price Revenue
    Casual 48000 6,000 288,000,000
    Deluxe 12000 8,000 96,000,000
    60000 384,000,000

    3A Raw Material consumption Budget


    Red Oak Granite
    Casual 48200 578,400 289,200
    Deluxe 12100 145,200 96,800
    60300 723,600 386,000
    Op. Inventory 70,000 60,000
    Cost 70 94
    Procurement 653,600 326,000
    Procurement rate 70 100
    Direct Material Cost 50,652,000 38,122,640 88,774,640

    Direct Labour Budget 4


    Product Units Hours per unit Rate Total
    Casual 48200 4 100 19,280,000
    Deluxe 12100 6 100 7,260,000

    Manufacturing Overheads 5A (Variable Budget) 5B Manufacturing Set up (V


    Variable 2015-16 2016-17 2015-16
    Supplies 15,000,000 19,080,000 3,900,000
    Power 21,000,000 26,712,000 900,000
    Maintenance 16,800,000 21,369,600
    Total 67,161,600
    Manufacturing Overheads Fixed Budget Manufacturing Set UP Fixe
    Indirect Labour 16,800,000
    Power 6,300,000 6,678,000
    Depreciation 10,200,000
    Supervision 3,900,000 4,134,000 10,500,000
    Total 37,812,000 Total

    Budgeted Overhead Rate

    Per Set u
    Manufacturing Operating Rate
    hour
    Casual Deluxe Driver Volume Driver Rate Per Direc
    Units 48200 12100 60300 1215.044776 Labour ho
    Set Up Batch hours 9,640 3,630 13,270 1,948
    Manufacturing Labour Hours 192,800 72,600 265,400 142
    Budgeted Cost per Unit of Closing Inventory
    Casual Deluxe
    Red Oak 840 840
    Granite 598 797 50/40 units in a
    DL 400 600 batch and rate
    Variable Mfg Overhead 1,215 calculated
    1,215 Based on volumefor
    one hour
    Fixed Mfg Overhead 570 855 Based on Labour hours
    Set Up cost 390 584 Based on Set-up hours
    4,012 4,891

    Inventory Cost
    Product Units Rate Total
    Raw Material
    Red Oak 80000 70 5,600,000
    Granite 20000 99.64 1,992,800
    7,592,800
    Finished Goods
    Product Units Rate Total
    Casual 1200 4,012 4,814,778
    Deluxe 600 4,891 2,934,786
    7,749,564

    COGS Budget
    RM Consumption 88,774,640
    Direct Labour 26,540,000
    Mfg. overhed 104,973,600
    Mfg. Set up overhead 31,951,800
    Production cost 252,240,040
    Finished Goods Cl Inventory 7,749,564
    FG Opneing Inventory 6,460,000
    COGS 250,950,476
    SGA Budget
    Sales Commission 24,960,000
    Fixed sales & distribution expenses 13,200,000 Casual Deluxe
    Variable Distribution Expenses 22,080,000 360 400
    Fixed Promotion & Distribution Expenses 17,556,000
    Operating Expenses 77,796,000
    Budgeted Income Statement
    Revenue 384,000,000
    COGS 250,950,476
    Gross Profit 133,049,524
    Operating Expenses 77,796,000
    EBIT 55,253,524
    Tax 18,786,198
    PAT 36,467,326
    2. Production Budget
    Items Projected Sales Op. Inventory Cl. Inventory Production units
    Casual 48000 1000 1200 48200
    Deluxe 12000 500 600 12100
    60300

    3B Raw Material procurement Budget


    Red Oak Granite
    Raw Material Consumption 723,600 386,000
    Op. Stock 70,000 60,000
    Closing Inventory 80,000 20,000
    Procurement 733,600 346,000
    Rate 70 99.64
    Total Cost 51,352,000 34,475,440 85,827,440

    26,540,000

    5B Manufacturing Set up (Variable) Production Units 2015-16


    2016-17 Op. inventory Sale Units Inventory
    4,960,800 1250 50000 1500
    1,144,800 Last year Manufacturing 50250 1.2

    6,105,600
    Manufacturing Set UP Fixed Budget
    8,400,000
    286,200
    6,030,000
    11,130,000
    25,846,200

    Per Set up
    hour
    Per Direct
    Labour hour

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