STT MSSV Họ Tên Đánh giá nhóm

1 215024121 Nguyễn Trần Tâm Thanh 100%

2 215030236 Nhan Ngọc Thanh 100%

3 215030538 Nguyễn Lê Mai Thảo 100%

ABC Bakery
Budgeting Assumptions

1. The Sales Budget

Assum: ABC Bakery is preparing budgets for the quarter ending June 30.

Budgeted sales for the next five months are:

April 2000 units
May 3000 units
June 5000 units
July 3000 units
August 4000 units.
The selling price is 200.000 VNĐ per unit.

The Sales Budget

April May June Quarter
Budget sales
(units) for a 2.000 3.000 5.000 10.000
Cream Cake
Selling price per
200.000 VNĐ 200.000 VNĐ 200.000 VNĐ 200.000 VNĐ
unit
400.000.000 600.000.000
Total sales 1.000.000.000 VNĐ 2.000.000.000 VNĐ
VNĐ VNĐ
 2. Expected Cash Collections
All sales are on account.
ABC Bakery's collection pattern is:
70% collected in the month of sale,
25% collected in the month following sale,
5% is uncollectible.
The March 31 accounts receivable balance of 300,000 will be collected in full.

Expected Cash Collections

April May June Quarter
Account Receivable at
300.000 VNĐ 300.000 VNĐ
beginning
April Sales
280.000.000 280.000.000
70% x 400.000.000 VNĐ
VNĐ VNĐ
100.000.000 100.000.000
25% x 400.000.000 VNĐ
VNĐ VNĐ
May Sales
420.000.000 420.000.000
70% x 600.000.000 VNĐ
VNĐ VNĐ
150.000.000 150.000.000
25% x 600.000.000 VNĐ
VNĐ VNĐ
June Sales
70% x 1.000.000.000 700.000.000 700.000.000
VNĐ VNĐ VNĐ
280.300.000 520.000.000 850.000.000 1.650.300.000
Total Cash Collection
VNĐ VNĐ VNĐ VNĐ

Expected Cash Collections: 1.650.300.000 VNĐ

Total Uncollectible Cash in 2nd Quarter: 5% x 2.000.000.000 = 100.000.000 VNĐ
Account Receivable Balance, end of June: 30% x 1.000.000.000 VNĐ = 300.000.000 VNĐ

3. The Production Budget:

ABC Bakery wants ending inventory to be equal to 20% of the following month’s budgeted
sales in units.
On March 31, 400 units were on hand

The Production Budget

April May June Quarter
Budget sales (units) for a
2.000 3.000 5.000 10.000
Cream Cake
Desired Ending Inventory 600 1.000 600 600
Total Needed 2.600 4.000 5.600 10.600
Beginning Inventory 400 600 1000 400
Required Production 2.200 3.400 4.600 10.200

4. The Direct Materials Budget

Assume:
At ABC Bakery, 30 grams of material are required per unit of product.
Management wants materials on hand at the end of each month equal to 20% of the following
month's production.
On March 31, 25.000 grams of material are on hand. Material cost is 3000 VNĐ per gram.

Required production for the next five months are:

April 2200 units
May 3400 units
June 4600 units
July 5000 units
August 4000 units.

The Direct Materials Budget

April May June Quarter

1 Required production 2.200 3.400 4.600 10.200

2 Materials per unit 30 30 30 30

3 Production needs 66.000 102.000 138.000 306.000

4 Desired Ending inventory 20.400 27.600 30.000 30.000

5 Total needed 86.400 129.600 168.000 336.000

6 Beginning inventory 25.000 20.400 27.600 25.000

7 Materials to be purchase 61.400 109.200 140.400 311.000

8 Cost per grams 3.000 VNĐ 3.000 VNĐ 3.000 VNĐ 3.000 VNĐ

Expected ash payment for 184.200.000 327.600.000 421.200.000 933.000.000

9 direct materials VNĐ VNĐ VNĐ VNĐ

5. Expected Cash Disbursement for Materials

ABC Bakery pays 3.000 VNĐ per gram for its materials.
One-half of a month's purchases are paid for in the month of purchase; the other half is paid in
the following month.
The March 31 accounts payable balance is 200.000.000 VNĐ.

Expected Cash Disbursement for Materials

April May June Quarter

200.000.000 200.000.000
Accounts pay. 3/31
VNĐ VNĐ

April purchase

50% x 184.200.000
92.100.000 VNĐ 92.100.000 VNĐ
VNĐ

50% x 184.200.000
92.100.000 VNĐ 92.100.000 VNĐ
VNĐ

May purchase

50% x 327.600.000 163.800.000 163.800.000

VNĐ VNĐ VNĐ
50% x 327.600.000 163.800.000 163.800.000
VNĐ VNĐ VNĐ

June purchase

50% x 421.200.000 210.600.000 210.600.000

VNĐ VNĐ VNĐ

Total cash 292.100.000 255.900.000 374.400.000 922.400.000

disbursement VNĐ VNĐ VNĐ VNĐ

6. The Direct Labor Budget

Assume:
At ABC Bakery, each unit of product requires 0.8 hours of direct labor.
The bakery has a "no layoff" policy so all employees will be paid for 60 hours of work each
week.
In exchange for the "no layoff" policy, workers agreed to a wage rate of 40.000 VNĐ per hour
regardless of the hours worked (No overtime pay).
For the next three months, the direct labor workforce will be paid for a minimum of 1800 hours
per month.

The Direct Labor Budget

April May June Quarter

1 Production 2.200 3.400 4.600 10.200

2 Direct Labor hours 0,8 0,8 0,8 0,8

Labor hours
3 1.760 2.720 3.680 8.160
required

Guaranteed labor
4 1.800 1.800 1.800
hours

5 Labor hours paid 1.800 2.720 3.680 8.200

6 Wage rate 40.000 VNĐ 40.000 VNĐ 40.000 VNĐ 40.000 VNĐ
 Total direct labor 72.000.000 108.800.000 147.200.000 328.000.000
7
cost VNĐ VNĐ VNĐ VNĐ

7. Manufacturing Overhead Budget

"A.B.C bakery uses a variable manufacturing overhead rate of 20.000 vnd per unit produced.
Fixed manufacturing overhead is 5.000.000 vnd per month and includes 1.000.000 vnd of
noncash costs"

Manufacturing Overhead Budget

April May June Quarter

1 Production in units 2.200 3.400 4.600 10.200

2 Variable mfg.OH rate 20.000 20.000 20.000 20.000

3 Variable mfg.OH costs 44.000.000 68.000.000 92.000.000 204.000.000

4 Fixed mfg.OH costs 5.000.000 5.000.000 5.000.000 15.000.000

5 Total mfg.OH costs 49.000.000 73.000.000 97.000.000 219.000.000

6 Noncash costs 1.000.000 1.000.000 1.000.000 3.000.000

Cash disbursements for manufacturing

7 48.000.000 72.000.000 96.000.000 216.000.000
OH

8. Selling and Administrative Budget

At A.B.C bakery, variable selling and administrative expenses are 10.000 vnd per unit sold.
Fixed selling and administrative expenses are 20.000.000 vnd per month
The fixed selling and administrative expenses include 3.000.000 vnd in costs-primarily
depreciation-that are not cash outflows of the current month

Selling and Administrative Budget

April May June Quarter
1 Budget sales 2.000 3.000 5.000 10.000

2 Variable selling and admin.rate 10.000 10.000 10.000 10.000

3 Variable expensive 20.000.000 30.000.000 50.000.000 100.000.000

4 Fixed selling and admin.expense 20.000.000 20.000.000 20.000.000 60.000.000

5 Total expensive 40.000.000 50.000.000 70.000.000 160.000.000

6 Noncash expenses 3.000.000 3.000.000 3.000.000 9.000.000

Cash disbursements for selling and

7 37.000.000 47.000.000 67.000.000 151.000.000
admin

9. The Cash Budget

ABC Bakery:
Maintains a minimum cash balance of 300.000.000 VNĐ
Borrows on the first day of the month and repay loans on the last day of the month.

Pays a cash dividend of 50.900.000 VNĐ in April.

Purchases 146.300.000 VNĐ of equipment in May and 45.400.000 VNĐ in June paid in cash.

Has an April 1 cash balance of 400.000.000 VNĐ

The Cash Budget

April May June Quarter

400.000.000 300.000.000 300.000.000 400.000.000

1 Beginning cash balance
VNĐ VNĐ VNĐ VNĐ

2 Cash Collections 280.300.000 520.000.000 850.000.000 1.650.300.000

3 Total cash available 680.300.000 820.000.000 1.150.000.000 2.050.300.000

4 Disbursements

5 Materials 292.100.000 255.900.000 374.400.000 922.400.000

6 Direct labor 72.000.000 108.800.000 147.200.000 328.000.000

7 Mfg. overhead 48.000.000 72.000.000 96.000.000 216.000.000

8 Selling and admin. 37.000.000 47.000.000 67.000.000 151.000.000

9 Equipment purchase - 146.300.000 45.400.000 191.700.000

1
Dividends 50.900.000 - - -
0

11 Total disbursements 500.000.000 630.000.000 730.000.000 1.809.100.000

Excess (deficiency) of
1
cash available over 180.300.000 190.000.000 420.000.000 241.200.000
2
disbursements