FORECASTS

Revenue Budget

Revenue Budget
     
Budgeted Sales Units (Q) Budgeted Selling Price (Tk.) Budgeted Sales Revenue (Tk.)

650 1200 780000

Production Budget

The production budget is calculated based on the policy that we produce the units to be sold in the
month of sale plus 18.75% of the next month’s sale to be held as ending inventory. Since we have
just started the business, we have no inventory of finished goods or raw materials or work in
process from the previous period.

Production Budget
  Q
Budgeted Sales units 650
Targeted Ending Inventory (18.75%*Sales) 150
Units needed 800
Beginning Inventory 0
Units needed to be produced 800

Direct Material Usage Budget

Direct Material Usage Budget

Physical Units Budget Per Mirror For Production (Q)
 Mirror(number of mirror)   1  800
Ice Cream Stick(number of sticks) 40 32000
Plywood(feet) 2 1600
Paint(ml) 100 80000
Sea Shells(number of sea shell) 6 4800
 Stones(number of stones) 5 4000
Cash Budget Per Quantity (Tk.) For Production (Tk.)
   
 Mirror 120 BDT 96,000.00
Ice Cream Stick 1.13 BDT 36,000.00
Plywood(feet) 125 BDT 200,000.00
Paint(ml) 0.80 BDT 64,000.00
Sea Shell 20 BDT 96,000.00
Stone 20  BDT 80,000.00

Total DM Required for Production BDT 286.93 BDT 572,000.00

Direct Material Purchase Budget

Mirror(number Ice Cream Plywood(feet Paint(ml) Sea Stone(number
of mirrors) Stick(number ) Shells(number of of stones)
  of sticks) sea shells)

Physical Units Budget          

Units needed for 4000
production 800 32000 1600 80000 4800
Target End Inv 750
(18.75%*Production
needs) 150 6000 300 15000 900
Units needed 950 38000 1900 95000 5700 4750
Begn Inv 0 0 0 0 0
Units needed to be 4750
Purchased 950 38000 1900 95000 5700
Price per unit 120 1.13 125 0.80 20.00 20

Cash Amount (Tk.) 114000 43016 237500 76000 114000 95000

 Direct Labor Budget
Direct Labor Budget
Production units DLH/unit Wage Rate (DLC/H) (Tk.) Total Cost (Tk.)
800 1.2 150 144000

Manufacturing Overhead Budget

Manufacturing Overheads Budget (January)

  Tk. Tk.
Variable MOH:    

Indirect Materials 78000  

    78000
Fixed MOH:    
Rent 10000  
Electricity 2000  
CuttingMachine depreciation 300  
Cutting Machine maintenance 200  
    80500
TOTAL MOH   90500
Support costs   6500

Manufacturing Overheads after allocation of support costs   98000