PLACE

PROMOTIO N

PLANNING

MAN POWER

RAW MATERIALS

TOP MANAGEMENT

MIDDLE MANAGERS

MIDDLE MANAGER

MIDDLE MANAGER

PRODUCTION DEPARTMENT

FINANCE DEPARTMENT

MAINTAINANCE DEPARTMENT

Supervisor

Supervisor
11 STAFF S

2 EMPLOYEES

3 EMPLOYEES

5 CHEFS

PRODUCTION BUDGET FOR DIRECT LABOUR

CASH BUDGET

PRODUCTION BUDGET FOR MANUFACTURING OVERHEADS

SELLING AND ADVERTISING BUDGET

PRODUCTION BUDGER FOR RAW MATERIAL PURCHASE

JAN

FEB

MARCH

Units to produce 6000 Expense per head(Rs) 50 Total Cost 300000

Desired ending inventory Total material need 3500 303500

7000
50 350000 2900 352900

8500
50 425000 2000 427000

Less opening inventory

Material purchased

4500
299000

3500
349400

2900
424100

Labour budget
jan
Units to produce time

feb 6000 0.41 2460 7000 0.41 2870

march 8500 0.41 3485

Total hours required Wage rate per hour

81
199260

81
232470

81
282285

Direct labor cost

Manufacture

Budget

jan 6000 1

feb 7000 1

march 8500 1

Units to produce Variable overhead rate

Variable overhead cost Fixed overhead

6000 20000

7000 20000

8500 20000

Total mfg. overhead cost Deduct depreciation

26000 1500

27000 1500

28500 1500

Manufacturing overhead - cash

24500

25500

27000

CASH BUDGET jan

Beginning cash balance Cash receipts

feb 50000 690000 55000 720000

march 60000 800000

Cash available Cash payments:

740000

775000

860000

Materials budget
Labor budget Manufacturing OH budget Total cash payments

299000
199260 24500 522760

349400
232470 25500 607370

424100
282285 27000 733385

Total output

600000

700000

850000

total expenses

522760

607370

733385

Gross margin
Other expenses Net Income

77240
25000 52240

92630
30000 62630

116615
32080 84535

Accounts receivable

2375000

Raw materials inventory

Total current assets Property and equipment Building Equipment Total property and equipment

8400
2894885 75000 180000

255000
3149885

Total assets
Liabilities and Equities Accounts payable Loan Retained earnings

1863515 650000 636370 3149885

Total liabilities and equities