In the books of Hypothetical Limited

Calculation of Cost of goods sold

Items

Cost (in Rs.)

Direct Material
Direct Labor
Variable Overhead
Fixed Overhead

15\unit
5\unit
9\unit
6\unit

Total Cost
Therefore, cost of goods sold = 9000*35= Rs.315000

35\unit

Budgeted Profit and Loss

Item
Sales(9000*50)
Less: Discount
Net Sales
Less: Expenses
COGS(9000*35)
Capacity Variance
Selling and Administrative expenses
Profit before Tax
Tax payable
Profit after tax

Amount(RS.)
4,50,000
2,700
4,47,300
3,15,000
2,400
65,000

3,82,400
64,900
32,450
32,450

Cash Budget for January

Item
Receipt from Debtors
Previous Month
Current month without discount
Current month with discount
Payment to suppliers and other parties
Creditors
Previous month
Current month
Labor
Variable overhead
Sales and administrative expenses
Manufacturing overhead(60-20)
Outstanding taxes(December)
Net Cash Flow
Opening Cash Balance
Closing Cash Balance

Amount(rs.)
2,50,000
1,35,000
1,32,300
40,000
1,02,400
48,000
86,400
65,000
40,000
25,000

Amount(rs.)

5,17,300

4,06,800
1,10,500
3,00,000
4,10,500