a) Product specification for 2012

Direct Materials
Nutritional supplement
Preservatives

1.5 ltr/unit
1 ltr/unit

Direct Manufacturing labour

Filling
Mixing
b) Inventory information in
Physical units for 2012
Finished Goods(Units)

Biginning
Inventory

0.25 Hrs/unit
0.4 Hrs/unit
Target Ending
Inventory

7200

10600

c) Sales and Revenue information

for 2012
selling Price
Units Expected To Be Sold
d) Cost Information
Nutritional supplement
Rs.
Preservatives
Rs.
Filling
Rs.
Mixing
Rs.
Variable manufacturing overhead costs
Variable non-manufacturing costs
Fixed manufacturing overhead costs
Fixed non-manufacturing costs
Inventoriable (manufacturing) cost

RS.

2011
3
2
14
20

70

120 per unit

18000 unit

Rs.
Rs.
Rs.
Rs.
12
15%
Rs.
Rs.

2012
5
3
17
25
per direct manu.lab- hrs
of revenue
110000
0

Schedule 1: Revenue Budget

For The Year Ending 31/03/2012

product

Selling price

5200

5000

Unit Sold

2700

2250

14040000

11250000
25,290,000.00

Total Revenue

Schedule 2: Production(in
Budget
unit)
For The Year Ending 31/03/2012
Product

Budgeted Unit Sold

(+) Targeted Closing stock
(-) Targeted Opening Stock

4950
100
0

Total Goods To Be Produced

5050

Schedule 3: Direct Material Usage Budget

For The Year Ending 31/03/2012
Product

Physical Units budget

P requires :
Q requires : 8 ltr

Cost Budget
Units Required
Cost Per pack

Direct Material
to be Used(Amt)

Total

units
22.35
15.50

2750
2300

61462.5 mtr
35650 mtr

Total

2750
3352.5

2300
2625

9,219,375.00

6,037,500.00

15,256,875.00

Schedule 4: Direct Manufacturing Labour Cost

For The Year Ending 31/03/2012
cost Budget

stiching

Unit Required

Packing
5050

Rates /pack
indian style
western style

1431.5

2750

3936625

192500

1070

2300

2461000
6397625

230000
422500

Total Labour Cost -Product

6820125

Schedule 5: Manufacturing Overhead Costs Budget

For The Year Ending 31/03/2012

Total
Variable Manufacturing Overhead Cost
Transportation
Indirect manf. Labour
maintenance
Misc
Fixed Manufacturing Overhead Cost
Depreciation
Office rent
Total Manufacturing
Overhead Cost

305137.5
20000
0
20000
20000
0
0

0
365137.5

Schedule 6A: Cost of Ending Finished Goods Inventory

For The Year Ending 31/03/2012

Cost/pack

Input/unit of
Output

Direct Material A
P
Q

3352.5
2625

50.00
50.00

Direct manf. Labour A

Filling
Mixing

1431.5
1070

50.00
50.00

Manufacturing Overheads cost

Energy Drink
Total Cost of Production

Schedule 6B: Ending Inventories Budget

For The Year Ending 31/03/2012
Product

Cost/Unit
Quantity
Value of Inventories

A
4930
3871.00
100
440050.00

Schedule 7: Cost of goods Sold Budget

For The Year Ending 31/03/2012
Opening Finish Goods Inventory

Direct material Used

(Schedule 3)

15,256,875.00

Direct labour Cost

(Schedule 4)

6820125

Direct Manf. Overhead cost

(Schedule 5)

365137.5

Ending Inventory
(Schedule 6B)

440050.00

Cost of Goods Sold

22002087.50

Schedule 8: Non Manufacturing Cost Budget

For The Year Ending 31/03/2012
Business Function
R&D/Product Design
(1% of revenue)
Marketing ( Rs7%
2/unit)
of revenue)

Variable cost

Total

252900

1770300

rent

840000

Administrative(Rs 0.50/unit)

342000

Total Non Manufacturing Cost

Fixed cost

3205200

3205200

Schedule 9:Budget Revenue Statement

For The Year Ending 31/03/2012

Revenue
(-) Cost of goods sold
Gross margin
(-) Operating Cost
Total Non Manufacturing Cost
Operating Income

A
25,290,000.00
22002087.50
3287912.50
3205200
82,712.50

365137.5
###########

8,911,068.75

7314.091216

4816.793919

Total

167625
131250
298875
71575
53500
125075
0.00
423950.00

Variable Cost

Name
Material
1) Cloth

Fixed

Amount
3205200

Total Variable Cost

Per unit
178.066667

Name
Manufacturing Overhead
Non Manufacturing Overhead

178.066667

Total
No. of
Fixed
Total Cost
Total
Profit (TRVariable
Units Sold Cost(FC) Cost(TVC)
(TC)
Revenue(TR) TC)
0.00
0.00
0.00
0.00
0.00
0.00
1000.00
0.00
178066.67
178066.67
120000.00
-58066.67
2000.00
0.00
356133.33
356133.33
240000.00 -116133.33
3000.00
0.00
890333.33
890333.33
360000.00 -530333.33
5000.00
0.00
890333.33
890333.33
600000.00 -290333.33
10000.00
0.00 1780666.67 1780666.67 1200000.00 -580666.67
12000.00
0.00 2136800.00 2136800.00 1440000.00 -696800.00
15000.00
0.00 2671000.00 2671000.00 1800000.00 -871000.00
17000.00
0.00 3027133.33 3027133.33 2040000.00 -987133.33
18000.00
0.00 3205200.00 3205200.00 2160000.00 -1045200.00

BREAK EVEN POINT

BREAK EVEN POINT

Total Cost (TC)

120000000
100000000

Fixed Cost(FC)
Total Revenue(TR)

80000000
60000000
40000000
20000000
0

1000

2000

-20000000
-40000000

Less:
Less:

Break Even Point

Production in units

18000

Fixed Cost

Name

Amount

Manufacturing Overhead
on Manufacturing Overhead
Total Fixed Cost Contribution

Selling Price per unit

120.00
120.00
120.00
120.00
120.00
120.00
120.00
120.00
120.00
120.00

BREAK EVEN POINT

0
0

Fixed Cost Contribution

0
0
0

BREAK EVEN POINT

No. of Units Sold

Total Variable Cost(TVC)
Profit (TR-TC)

3000

5000

Particular
Sales
Variable Cost
Contribution
Fixed Cost
Profit

10000

12000

15000

Total
Per Unit
2160000
120
3205200
140
-1045200
-20
0
-1045200

reak Even Point

Fixed Cost
Contibution
0
-20

0 units

17000

18000

Indian Style
Stiching
Cloth (metre)
1.80
2.00
2.25
2.00
2.00
1.80
1.50
2.00
2.00
2.00
3.00
22.35

stiching rateAmount
70
126
70
140
90
202.5
80
160
60
120
60
108
90
135
40
80
30
60
30
60
80
240
1431.5

cloth
Cloth
22.35
Total

rate

Amount
150
4784

3352.5

Cloth Required per pack

Cloth (metre)
3.50
4.00
1.25
3.00
1.25
1.25
1.25
15.50
Total

Western Style
Cloth Required per pack
Cloth (metre)
Rate
100
100
200
250
200
250
250

3695

Material amount
350
400
250
750
250
312.5
312.5
2625

stiching
150
200
100
200
120
150
150
1070