Master Budget 1

PUFFY LOVE
Absorption Costing
For the Year Ended December 31, 2023
Sales
₱
Red Mung Beans 1,794,817
₱
Sweet Potato 890908
₱
Squash 534545 ₱ 3,220,270
LESS: Cost of Good Sold ₱ 1,672,850
Gross Profit ₱ 1,547,420
LESS: Marketing and Administrative Expenses ₱738780
Net Income Before Tax ₱ 808,640
LESS: Tax Expense (20%) ₱ 19,830
NET INCOME ₱ 788,810
PUFFY LOVE
Cost-Volume-Profit Analysis
December 31, 2023
RED MUNG BEANS SWEET POTATO SQUASH
Per Per Per
Unit Total Cost % Unit Total Cost % Unit Total Cost %
Sales 10.00 1,794,817.00 100.00% 10.00 890,908.00 100.00% 10.00 534,545.00 100.00%
Variable Cost 3.61 598,272.00 33.33% 2.88 296,969.00 33.33% 3.19 170,519.86 31.90%
Contribution
Margin 6.39 1,196,545.00 66.67% 7.12 593,939.00 66.67% 6.81 364,025.15 68.10%
Fixed Cost 2.07 245,310.00 2.07 245,310.00 2.07 245,310.00
Net Income 4.32 951,235.00 5.05 348,629.00
MASTER BUDGET
PUFFY LOVE
Sales Budget
For Quarter 1 to Quarter 4 of 2024
QUARTER QUARTER QUARTER QUARTER
TOTAL
1 2 3 4
RED MUNG BEANS
Budgeted Sales in
20,800 24,300 24,600 31,200 100,900
Units
Multiply: Selling Price
10 10 10 10 10
per Unit
BUDGETED SALES
₱ 208,000.00 ₱ 243,000.00 ₱ 246,000.00 ₱ 312,000.00 ₱ 1,009,000.00
REVENUE
SWEET POTATO
Budgeted Sales in
20,800 24,300 24,600 31,200 100,900
Units
Multiply: Selling Price 10 10 10 10 10
per Unit
BUDGETED SALES
₱ 208,000.00 ₱ 243,000.00 ₱ 246,000.00 ₱ 312,000.00 ₱ 1,009,000.00
REVENUE
SQUASH
Budgeted Sales in
20,800 24,300 24,600 31,200 100,900
Units
Multiply: Selling Price
10 10 10 10 10
per Unit
BUDGETED SALES
₱ 208,000.00 ₱ 243,000.00 ₱ 246,000.00 ₱ 312,000.00 ₱ 1,009,000.00
REVENUE
TOTAL
BUDGETED SALES ₱ 624,000.00 ₱ 729,000.00 ₱ 738,000.00 ₱ 936,000.00 ₱ 3,027,000.00
REVENUE
TOTAL
BUDGETED SALES 62,400.00 72,900.00 73,800.00 93,600.00 302,700.00
IN UNITS
PUFFY LOVE
Schedule of Cash Collections on Sales
Collection Pattern
• 98% collected in the quarter of sale
• 1% collected in the quarter following sale
• 1% uncollectible
Quarter 1 Quarter 2 Quarter 3 Quarter 4 TOTAL
Quarter 1 Sales
62,400*98% ₱ 61,152.00 ₱ 61,152.00
62,400*1% ₱ 624.00 ₱ 624.00
Quarter 2 Sales
72,900*95% ₱ 71,442.00 ₱ 71,442.00
72,900*4% ₱ 729.00 ₱ 729.00
Quarter 3 Sales
73,800*95% ₱ 72,324.00 ₱ 72,324.00
73,800*4% ₱ 738.00 ₱ 738.00
Quarter 4 Sales
93,600*95% ₱ 91,728.00 ₱ 91,728.00
93,600*4%
Total Cash Collections ₱ 61,152.00 ₱ 71,442.00 ₱ 73,053.00 ₱ 92,466.00 ₱ 298,113.00
PUFFY LOVE
Production Budget
RED MUNG BEANS
Budgeted Sales in Units 20,800.00 24,300.00 24,600.00 31,200.00 100,900.00
ADD: Desired Ending
Inventory 2,430.00 2,460.00 3,120.00 3,300.00 11,310.00
Total Units Needed 23,230.00 26,760.00 27,720.00 34,500.00 112,210.00
LESS: Beginning
Inventory 2,000.00 2,430.00 2,460.00 3,120.00 10,010.00
PRODUCTION
NEEDED 21,230.00 24,330.00 25,260.00 31,380.00 102,200.00
SWEET POTATO
ADD: Desired Ending
Inventory 2,430.00 2,460.00 3,120.00 3,300.00 11,310.00
LESS: Beginning
Inventory 2,000.00 2,430.00 2,460.00 3,120.00 10,010.00
PRODUCTION
NEEDED 21,230.00 24,330.00 25,260.00 31,380.00 102,200.00
SQUASH
ADD: Desired Ending
Inventory 2,430.00 2,460.00 3,120.00 3,300.00 11,310.00
LESS: Beginning
Inventory 2,000.00 2,430.00 2,460.00 3,120.00 10,010.00
PRODUCTION
NEEDED 21,230.00 24,330.00 25,260.00 31,380.00 102,200.00
TOTAL
PRODUCTION 63,690.00 72,990.00 75,780.00 94,140.00 306,600.00
NEEDED
PUFFY LOVE
Direct Materials Budget
Materials
Needed in
Production ₱ 63,690.00 ₱ 72,990.00 ₱ 75,780.00 ₱ 94,140.00 ₱ 306,600.00
ADD: Desired
Ending
Inventory ₱ 10,948.50 ₱ 11,367.00 ₱ 14,121.00 ₱ 14,850.00 ₱ 51,286.50
Total Needed
Materials ₱ 74,638.50 ₱ 84,357.00 ₱ 89,901.00 ₱108,990.00 ₱ 357,886.50
LESS:
Beginning
Inventory ₱ 9,000.00 ₱ 10,948.50 ₱ 11,367.00 ₱ 14,121.00 ₱ 45,436.50
Materials
Purchases
Needed ₱ 65,638.50 ₱ 73,408.50 ₱ 78,534.00 ₱ 94,869.00 ₱ 312,450.00
Materials
Purchases
Needed ₱65,638.50 ₱73,408.50 ₱78,534.00 ₱ 94,869.00 ₱ 312,450.00
MULTIPLY:
Materials Cost
per Unit ₱ 4.00 ₱ 4.00 ₱ 4.00 ₱ 4.00 ₱ 4.00
Materials
₱262,554.00 ₱293,634.00 ₱314,136.00 ₱379,476.00 ₱1,249,800.00
Purchases
PUFFY LOVE
Schedule of Cash Disbursements on Materials Purchases
Quarter 1
Purchases
80% x 393, 831 ₱210,043.20 ₱210,043.20
20% x 393, 831 ₱52,510.80 ₱52,510.80
Quarter 2
Purchases
80% x 440, 451 ₱234,907.20 ₱ 234,907.20
20% x 440, 451 ₱ 62,827.20 ₱ 62,827.20
Quarter 3
Purchases
80% x 471, 204 ₱251,308.80 ₱ 251,308.80
20% x 471, 204 ₱ 62,827.20 ₱ 62,827.20
Quarter 4
Purchases
80% x 569, 214 ₱303,580.80 ₱ 303,580.80
20% x 569, 214
Total Cash
Disbursement
₱210,043.20 ₱287,418.00 ₱314,136.00 ₱366,408.00 ₱1,178,005.20
for Materials
Purchases
PUFFY LOVE
Direct Labor Budget
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Total Production Needed
(Per unit) 63,690 72,990 75,780 94,140 306,600
Total Production Needed
(per batch) 204.13 233.94 242.86 301.73 982.66
Multiply: Direct Labor
required per unit (hrs.) ₱ 0.30 ₱ 0.30 ₱ 0.30 ₱ 0.30 ₱ 0.30
Required Labor Hours for
Production 61.24 70.18 72.86 90.5
Compare: Labor Hours
Guaranteed Paid 104 104 104 104
Labor Hours for
Payment 104 104 104 104 416
Multiply: Direct Labor
Cost per hour ₱ 100.00 ₱ 100.00 ₱ 100.00 ₱ 100.00 ₱ 100.00
Total Direct Labor Cost ₱ 10,400.00 ₱ 10,400.00 ₱ 10,400.00 ₱ 10,400.00 ₱ 41,600.00
PUFFY LOVE
Manufacturing Overhead Budget
• Manufacturing Overhead is applied to units of product based on direct labor hours
• Variable Manufacturing Overhead Rate = P 100 per direct labor hour
• Fixed Manufacturing Overhead per Quarter = P 10,000
Budgeted Direct Labor
Hours 61.24 70.18 72.86 90.5 294.78
Multiply: Variable
Manufacturing ₱ 100.00 ₱ 100.00 ₱ 100.00 ₱ 100.00 ₱ 100.00
Overhead Rate
Variable Manufacturing
Overhead Cost ₱ 6,124.00 ₱ 7,018.00 ₱ 7,286.00 ₱ 9,050.00 ₱ 29,478.00
Add: Fixed Manufacturing
Overhead Cost ₱ 10,000.00 ₱ 10,000.00 ₱ 10,000.00 ₱ 10,000.00 ₱ 40,000.00
Total Manufacturing
₱ 16,124.00 ₱ 17,018.00 ₱ 17,286.00 ₱ 19,050.00 ₱ 69,478.00
Overhead Cost
69,478/12 operating months since it is always per batch = 5,789.8/26 operating days=
222.69/294.78 = 0.89
PUFFY LOVE
Selling and Administrative Expense Budget
Budgeted Sales
62,400.00 72,900.00 73,800.00 93,600.00 302,700.00
in Units
Multiply:
Variable S & A ₱2.00 ₱2.00 ₱2.00 ₱2.00 ₱2.00
rate
Variable Selling
and 124,800.00 145,800.00 147,600.00 187,200.00 605,400.00
Administrative
Add: Fixed
Selling and
₱200,000.00 ₱200,000.00 ₱200,000.00 ₱200,000.00 ₱800,000.00
Administrative
Expenses
Total Selling
and ₱324,800.0 ₱347,600.0
₱345,800.00 ₱387,200.00 ₱1,405,400.00
Administrative 0 0
Expenses
PUFFY LOVE
Cash Budget
• Puffy Love maintains a minimum of P 100,000 cash balance every quarter
• Beginning Cash Balance on Quarter 1 is P 3,000,000
Beginning
Cash Balance ₱3,000,000.00 ₱2,515,908.80 ₱1,943,732.80 ₱1,344,649.80 ₱3,000,000.00
Add: Cash
Collections ₱ 61,152.00 ₱ 71,442.00 ₱ 73,053.00 ₱ 92,466.00 ₱ 298,113.00
Total Cash
Available ₱3,061,152.00 ₱2,587,350.80 ₱2,016,785.80 ₱1,437,115.80 ₱3,298,113.00
Less: Cash
Disbursements
on
Material ₱210,043.20 ₱287,418.00 ₱314,136.00 ₱366,408.00 ₱1,178,005.20
Labor ₱10,400.00 ₱10,400.00 ₱10,400.00 ₱10,400.00 ₱41,600.00
Selling and
Administrative
Expenses ₱324,800.00 ₱345,800.00 ₱347,600.00 ₱387,200.00 ₱1,405,400.00
Total Cash
Disbursement ₱545,243.20 ₱643,618.00 ₱672,136.00 ₱764,008.00 ₱2,625,005.20
Excess Cash
(Deficiency) ₱2,353,508.80 ₱1,608,432.80 ₱835,549.80 ₱673,107.80 ₱673,107.80
Financing
Needed
Borrowing - - -
Repayments - - - - -
Interest - - - - -
Total
Financing
Needed
Ending Cash
₱2,515,908.80 ₱1,943,732.80 ₱1,344,649.80 ₱673,107.80 ₱673,107.80
Balance
PUFFY LOVE
Budgeted Income Statement
Sales ₱624,000.00 ₱729,000.00 ₱738,000.00 ₱936,000.00 ₱3,027,000.00
Less: Cost of
goods sold ₱323,523.00 ₱377,535.60 ₱382,739.40 ₱484,859.70 ₱1,568,657.70
Gross Profit ₱300,477.00 ₱351,464.40 ₱355,260.60 ₱451,140.30 ₱1,458,342.30
Less: Selling and
Administrative
Expenses ₱324,800.00 ₱345,800.00 ₱347,600.00 ₱387,200.00 ₱1,405,400.00
Net Income -₱24,323.00 ₱5,664.40 ₱7,660.60 ₱63,940.30 ₱52,942.30
PUFFY LOVE
Budgeted Schedule of Accounts Receivable
QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4 TOTAL
Accounts
Receivable,
Beginning ₱0.00 ₱562,224.00 ₱1,219,158.00 ₱1,883,481.00 ₱2,726,391.00
Add: Credit
sales ₱624,000.00 ₱729,000.00 ₱738,000.00 ₱936,000.00 ₱3,027,000.00
Less: Collection
on Accounts
Receivable ₱61,152.00 ₱71,442.00 ₱73,053.00 ₱92,466.00 ₱298,113.00
Accounts
Receivable,
Ending ₱562,848.00 ₱1,219,782.00 ₱1,884,105.00 ₱2,727,015.00 ₱5,455,278.00
Less: Bad Debts ₱624.00 ₱624.00 ₱624.00 ₱624.00 ₱1,248.00
Net Realizable
Value of
₱562,224.00 ₱1,219,158.00 ₱1,883,481.00 ₱2,726,391.00 ₱5,454,030.00
Accounts
Receivable
PUFFY LOVE
Budgeted Schedule of Raw Materials
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Desired Materals, Ending
Inventory 10,948.50 11,367.00 14,121.00 14,850.00
Multiply: Material Cost
₱4.00 ₱4.00 ₱4.00 ₱4.00
per Unit
Raw Materials Inventory ₱43,794.00 ₱45,468.00 ₱56,484.00 ₱59,400.00
PUFFY LOVE
Budgeted Schedule of Accounts Payable
Accounts Payable, Beginning ₱52,510.80 ₱62,827.20 ₱62,827.20
₱314,136.0
Add: Credit Purchses
₱262,554.00 ₱293,634.00 0 ₱379,476.00 ₱1,249,800.00
₱314,136.0
Less: Payments Made
₱210,043.20 ₱287,418.00 0 ₱366,408.00 ₱1,178,005.20
Accounts Payable, Ending ₱52,510.80 ₱58,726.80 ₱62,827.20 ₱75,895.20 ₱71,794.80
PUFFY LOVE
Product Costing
December 31, 2022
Red Mung Beans
PRODUCT PUFFY LOVE
COMPONENTS Budgeted QUANTITY
Balance Sheet PRICE COST
Water December 31, 2024
240 0.008325 1.998
Butter ASSETS 113LIABILITIES AND
0.2 EQUITY 22.6
Current Assets
White Sugar Current
229 Liabilities0.092 21.068
Cash Salt ₱673,107.80 Accounts 3 Payable 0.0625 ₱75,895.20
0.1875
AccountsAll Purpose Flour 120 0.053 6.36
Receivable
Eggs ₱2,726,391.00 Loans4Payable 9 ₱350,000.00
36
Bad DebtConfectioner's Sugar ₱1,248.00 Interest
10 Payable 0.15 ₱15,500.00
1.5
Raw Materials
Red Mung Beans 500 0.09 45
InventoryAll Purpose Cream ₱59,400.00 Total Liabilities
250 0.32 ₱441,395.20
80
Total Current Assets Milk
Condensed ₱3,457,650.80 66.67 0.23 15.3341
Packaging 1 0.2 0.2
Non-Current
TotalAssets 230.2476
Land ₱1,500,000.00
Number of units produce 50
Building Production Cost per₱1,000,000.00
Unit Owner's Equity 4.604952
Total Non-Current
Assets Sweet Potatoes ₱2,500,000.00 Molano, Capital ₱4,248,822.60
PRODUCT Total Owner's Equity ₱5,516,255.60
COMPONENTS QUANTITY PRICE COST
Water TOTAL
240 LIABILITIES
0.008325 1.998
TOTAL ASSETS ₱5,957,650.80 ₱5,957,650.80
Butter AND OWNER'S
113 EQUITY
0.2 22.6
White Sugar 229 0.092 21.068
Salt 3 0.0625 0.1875
All Purpose Flour 120 0.053 6.36
Eggs 4 9 36
Confectioner's Sugar 10 0.15 1.5
Sweet Potatoes 250 0.09 22.5
Brown Sugar 100 0.092 9.2
All Purpose Cream 250 0.32 80
Condensed Milk 66.67 0.23 15.3341
Packaging 1 0.2 0.2
Total 216.9476
Number of Units Produce 50
Production Cost per Unit 4.338952
SQUASH
Product Components Quantity Price Cost
Water 240 0.008325 1.998
Butter 113 0.2 22.6
White Sugar 19 0.092 1.748
Salt 3 0.0625 0.1875
All Purpose Flour 120 0.053 6.36
Eggs 4 9 36
Confectioner's Sugar 10 0.15 1.5
Squash 500 0.097 48.5
Brown Sugar 150 0.092 13.8
All Purpose Cream 250 0.32 80
Condensed Milk 66.67 0.23 15.3341
Total 228.0276
Number of Units Produced 50
Production Cost per Unit 4.560552

Master Budget 1

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PUFFY LOVE

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