Title: My/ Our budget (for the next quarter ending June 30, 2018)

Seatwork-by partner, 3 or individual

To be submitted in the Bigsky drop box on or Feb 7, 2pm (use 1 file
Write your output in 1 whole sheet yellow paper, use excel, font-ari
Guide questions:
1- Given the chance what will you engage in the future as busin
a) Manufacturing business? What is the name? and Why?
b) Service business related to my degree? What is the name?
DONE 2- What product you will sell to earn profit? (sheet1)
If manufacturing what is your finished product (mention 1 on
If service what specific service your will provide (mention 1 o
3- Prepare Budget Schedules for your business as follows;
(align your budget with our lessons in budgeting)
DONE a) Sales Budget or Service revenue budget-(include & ex
a.1 If manufacturing: How many units you will sell?
If Service: How many participants/ events? At h
Show the relevant information in the budget sc
b) Purchases budget- (what will you buy?)
b.1 If manufacturing: 1 kind of raw material only
If service: for 1 kind of material/ consumable s
Show the relevant information in the budget sc
c) Direct labor/ salary/ wages Budget-( what is your wag
to number of employee, wage rate & pay days)
Show the relevant information in the budget sc
d) Cash Budget- How much is your starting cash? What
cash (show the details & amount)? Base only in your
Show the relevant information in the budget sc
e) My findings, realization & reflection while doing the se
Enumerate and write your reactions on what you disc
the budget? (focus on the problems & solutions that y
the your budgeting and planning)
ng June 30, 2018)

eb 7, 2pm (use 1 file name & utilize many sheets if needed)

r, use excel, font-arial 12

n the future as business? Choose any one. (sheet 1)

name? and Why?
e? What is the name? and why?
? (sheet1)
roduct (mention 1 only)
provide (mention 1 only)
ness as follows;
ns in budgeting)
budget-(include & explain your basis in forecasting)
ny units you will sell? At how much each?
cipants/ events? At how much each?
tion in the budget schedule (sheet 2)

f raw material only

terial/ consumable supplies you really need often
tion in the budget schedule (sheet 3)
t-( what is your wage policy including but not limited
age rate & pay days)
tion in the budget schedule (sheet 4)
starting cash? What are your sources & uses of
? Base only in your budget from a to c.
tion in the budget schedule (sheet 5)
on while doing the seatwork (sheet 1)
ns on what you discover while preparing
ms & solutions that you identified in
Seatwork: Our Budget

Business Name XO Furnitures

Type Manufacturing Business
Product Hand Carved Chairs

Findings, Realizations & Reflection

Preparing a budget out of scratch was very challenging as you need to make educated
forecasts and assumptions. All must have basis and should be relevant to your budget
schedule.
 need to make educated
e relevant to your budget
XO Furnitures estimates that it will sell 50 hand carved chairs during the first month of 2018 with
hand carved wooden chairs is sold for PHP 10

1st Quarter
Janury February March
Sales Volume
50 53 56
Forecast

XO Furnitures
Sales Budget
For the Quarter Ending June 30, 201
Month April
Sales Volume 59
Selling Price PHP 10,000.00
Sales PHP 590,000.00
g the first month of 2018 with a 5% increase in sales each of the following months. Each
den chairs is sold for PHP 10,000.00

2nd Quarter 3rd Quarter

April May June July
59 62 66 70

XO Furnitures
Sales Budget
uarter Ending June 30, 2018
May June
62 66
PHP 10,000.00 PHP 10,000.00
PHP 620,000.00 PHP 660,000.00
Product Hand Carved Chairs
Raw Material Log of Wood

In order to prepare a Purchases Budget, we need to know how many hand carved chairs will be
produced. Hence, a Production Budget must be prepared first.

XO Furnitures desires to have 20% of the next month's forecasted sales volume in inventory at
the end of each month. March ending inventory reflects this policy.

XO Furnitures
Production Budget
For the Quarter Ending in June 30, 2018
April May June
Sales 59 62 66
Inventory, ending 13 14 14
Maximum Production 72 76 80
Inventory, beginning 12 13 14
Production Budget 60 63 66

Calculations:
Inventory, beginning
=Sales Volume of Current Month *. 20
Inventory,Ending
=Sales Volume of Next Monnth * .20
 Each Hand Carved Chair require 1 log of wood (1 cubic meter) which cost PHP 5,000
y hand carved chairs will be
maintain TEN(10) 1-cubic meter logs of wood of monthly ending inventories. Inven
pared first.
ending of March.
XO Furnitures
ales volume in inventory at Production Budget
ts this policy. For the Quarter Ending in June 30, 2018
April
Production Need 60
RM inventory,end 10
Max Requirement 70
RM inventory,beg 10
Raw Materials Budget 60
Unit Cost PHP 5,000.00
RM Purchases Budget PHP 300,000.00
(1 cubic meter) which cost PHP 5,000. XO Furnitures is to
of monthly ending inventories. Inventory policy was met
ding of March.
O Furnitures
duction Budget
r Ending in June 30, 2018
May June
63 66
10 10
73 76
10 10
63 66
PHP 5,000.00 PHP 5,000.00
PHP 315,000.00 PHP 330,000.00
 XO Furnitures will pay its craftsmen PHP 2,000 pesos per piece of chair carv

XO Furnitures
Direct Labor Cost Budget
For the Quarter Ending June 30, 2018
April May
Units to be Produced 60 63
Rate per Piece PHP 2,000.00 PHP 2,000.00
Direct Labor Cost Budget PHP 120,000.00 PHP 126,000.00
er piece of chair carved.

2018
June
66
PHP 2,000.00
PHP 132,000.00
 Sources: Revenue
Purchase of Raw Materials; Direct
Uses:
Labor Cost

XO Furnitures
Projected Cash Flow Statement
For the Quarter Ending June 30,2018
Net Cash Flow
Cash sales P 1,870,000.00
Payment of Direct Labor Cost (378,000.00)
Payment of Purchases Cost (945,000.00)
Net cash inflow 547,000.00
Net increase in cash during the Quarter 547,000.00
Add: Cash balance-Mar 1 5,000.00
CASH BALANCE-END OF JUNE P 552,000.00