Most Updated Mancon

HOLY ANGEL UNIVERSITY
Inventory Management Service for Allaine’s Bakery
A Consulting Engagement
Submitted by:
Amistad, Dangeline V.
De Guzman, Krystle Shane M.
Gopiao, Axeilou Isseymiyaki Labrynt P.
Tanglao, Louise Joy C.
Quicho, Jennifer L.
Fifth Year Bachelor of Science in Accountancy Students of
Holy Angel University


School of Business and Accountancy
Accountancy Department
Certificate of Acceptance
We, Allaine’s Bakery, herein confirm that the formal consultancy engagement report on
Inventory Management Service which is the final output for the subject course requirement in
Management Consultancy, a prerequisite for the completion of the degree of Bachelor of Science
in Accountancy, has been accepted and has received a copy of it. Affixed in this certification is a
signature by Mrs. Lina C. Lingat that affirms such acceptance of the engagement report and
understanding that the application and usage of the contents of the engagement report will be up
to the sole discretion of the company.
Affirmed by:
Mrs. Lina C. Lingat
Owner
Date:
Acknowledgement
Foremost, the consultants would like to express the deepest gratitude and warm appreciation to
the owners and employees of Allaine’s Bakery for giving us their time and effort to be part of
this academic enrichment activity conducted by the school. Without their cooperation and
consideration, this engagement would not be accomplished.
The team would also like to thank their hardworking Management Consultancy professor, Mr
Jon Bryan Pamintuan, for sharing his knowledge and expertise in this engagement. His patience
and guidance helped in all the time of research and writing of this paper.
Also, they are thankful to their family and friends who have been always helping and
encouraging them throughout the engagement period.
At last but not the least they are thankful for is the Almighty God. He is obviously the One who
has always guided them to work on the right path of life. Without his grace, this project could not
become a reality.
Dedication
This engagement report is humbly dedicated to the owners and employees of Allaine’s Bakery to
help with the improvement and development of their business operations. This report is focused
in assisting Allaine’s Bakery to search for possible alternative solutions for its problems.
Also, this is dedicated to the related parties of Allaine’s Bakery who wants them to be successful
as a leading enterprise in its industry.
This is also whole-heartedly dedicated to our families whose untiring support and assistance
have made possible the fruition of our efforts and to our friends and classmates for their
cooperation while conducting the engagement.
Lastly, this is dedicated to the future consultants who can use this as their guide or reference.
History
With a history steeped in family tradition, Allaine’s Bakery is owned and operated locally
by Lingat Family. Mr. and Mrs. Lingat can trace their baking history back to 2004. From its humble
beginnings as a small bakeshop inside their house, the family business grew out of the home and
moved into a larger building to meet the demands of growing number of customers.
Since there were no mixers at the time they started, everything was truly handmade. The
dough was placed in trough and everything was mixed by hand. Also, they create all recipes
themselves and their products are an original delicacy. Today, Allaine’s Bakery stands as an
industry and local business leader, dedicated to their staff, their customers, and most of all, their
community.
Description
Allaine’s bakery is located at Moras Dela Paz, Sto. Tomas, Pampanga. It is located along
the highway and near a tricycle terminal. There are also a lot of passerby who are all potential
customers. It is open every day from 5 am until 8 pm. It only has two employees which are the
baker and the store attendant. The company focuses on meeting the demands of a broad target
market which includes people of all ages, children through adults, within and outside the area, and
regardless of their income levels. The products of Allaine’s Bakery are all made from scratch with
fresh ingredients and secret recipe. The price of the products ranges from 2 pesos to 50 pesos each.
Their pricing strategy strives to be competitive with the industry. To provide the business with a
minimum price option, costs and expenses are computed. As long as the prices of competitors are
high enough to cover the costs calculated, they will maintain to choose prices that are competitive
in the industry.
Root Problem
The business consistently produces a specific amount of bread for each kind every day
without considering customers’ demand. The unsold products can’t be sold for the following day
because they don’t want to serve products that are below the standard of freshness in which their
customers are accustomed to. Therefore, these left-overs are just being disposed by the business.
Symptom Problem
There are surplus and shortage on some of the company’s products. The bakery suffers
material amount of losses from the disposal of unsold breads, thereby decreasing the profitability
of the business.
Objectives
The objective of this engagement is to determine approaches on how to control bakery
losses from unsold products, thereby increasing its profits. In particular, the engagement strives to
assist the business by:
 Determining the best selling product with reasonable profit margin;
 Improving marketing strategy for bakery products; and
 Establishing waste management and elimination strategies.
Scope
The client and consultant agreed that the engagement focuses on creating ways on how to reduce
bakery losses from unsold products of Allaine’s Bakery. This means that the engagement is
restricted to one certain store. The engagement will be leaving out factors, such as customer
satisfaction and customer value. Instead, the focus is on constructing a model in order to control
the losses from its unsold products to increase its profits.

Engagement Methodology
Start
Planning Phase
No Accept Yes
End of consulting Clarifying business
engagement Engagement? objectives
Evaluation Phase Data Collection Phase Identification of possible

problems
Development Phase Analysis and

Conclusion
Implementation Phase
Is the
Review the previous Yes
No proposed
phase and modify the Implementation of
solution
solution to meet the the solution to the
effective?
client’s needs client’s business
End Termination Phase Follow-up Procedure

I. Planning Phase
This is the phase where the consulting team and the client will meet to discuss the client’s
concern. The background of the client’s business will be provided to the consulting team to
familiarize themselves with the current situation of the business. The consulting team will assist
the client to distinguish its desired specific outcomes and identify possible problems that might
occur during the engagement.
Acceptance of the Engagement
The consulting team will identify the case in which the client needs help. Terms and
agreements as well as limitations of the engagement will also be discussed. The consulting team
will decide if they have enough knowledge and expertise to accept the engagement.
Clarifying Business Objectives
The consulting team will narrow down its objectives and assist the client to identify its
desired specific outcomes. Clarification of duties and responsibilities of the client and consulting
team will also be discussed. The engagement plan must should be aligned to the problem identified.
Identification of Possible Problems
Possible problems that might occur throughout the engagement will be identified and
considered. Consideration of this problems may help the consulting team to manage risks that may
transpire during the engagement.

II. Data Collection Phase
The consulting team will be conducting personal interviews with the owner and employees
of Allaine’s Bakery. An interview will be conducted to know the possible reasons of the problem.
The team will use questionnaires, which will be used as a guide for the study. The team will also
need the inventory record of the company. The consulting team will need the weekly demand and
contribution margin of each product to arrive to a better solutions and recommendations.
III. Evaluation Phase
The consulting team will evaluate the data from the owner and employees. Through this,
the consulting team will be able to find out the cause of the problem and will be able to know the
possible approaches to the problem.
IV. Development Phase
This phase includes the examination of the results from the study. The consulting team
will make possible courses of action to the problem from the data gathered and the results of the
examination.
Analysis and Conclusion
The consulting team will test the courses of action identified. After weighting each
alternatives, the consulting team will choose the best possible action. After that, the consulting
team will identify the procedures to be followed.

V. Implementation Phase
This phase includes the testing of the proposed solution if it’s feasible enough to solve the
identified business problem. The consulting team may modify and review the previous phase if
the procedure doesn’t meet the client’s needs. The implementation of the proposed procedure will
also be monitored through a follow-up procedure.
Implementation
The consulting team will apply the proposed solution and work procedures. The people involved
will also be instructed on how to implement the said procedure.
Follow-up Procedure
After the implementation, the process should be monitored and maintained to make sure
that it is working in accordance with the client’s needs and the objectives identified. The consulting
team can provide assistance to client if the situation requires to do so.
VI. Termination
This is the end of the engagement where the consulting team has served its purpose to
develop and implement the procedures in line with the client’s needs.
Business Model Canvas
Value Propositions
Allaine’s Bakery has established a loyal customer base in an up and coming neighborhood in
Moras Dela Paz. They offer quality baked goods because they use only the best natural
ingredients and no preservatives. They also keep their prices at affordable rates. More
importantly, they want their customers to feel the happiness that they want to transmit in the
breads after eating them.
Customer Segments
They focus on meeting the demands of a broad target market. It includes people of all ages,
children through adults, within and outside the area, and regardless of their income levels.
Customer Relationships
Their aim is to serve and nurture their own neighborhood first. Also, they give promotional items
like calendars during Christmas season. When a customer places bulk orders, they give discounts
and freebies.
Revenue Streams
The day to day walk-in sales cover all their costs make up their whole revenue. Special orders
are more profitable, but seasonal. Their pricing strategy strives to be competitive with the
industry.
Channels
The company is located in a rented space of a commercial building. It is located along the
highway and near a tricycle terminal. There are also a lot of passerby who are all potential
customers. They do not have a social media page so they can only advertise their products
through word of mouth.
Cost Structure
They order the ingredients directly from suppliers. To provide the business with a minimum
price option, costs and expenses are computed. As long as the prices of competitors are high
enough to cover the costs calculated, they will maintain to choose prices that are competitive in
the industry.
Key Activities
The business starts their operations at 5 in the morning and ends at 9 in the evening. They start
early because they know that breads are always part of the breakfast of their customers. As for
legal requirements, they have complied with all of it. They are DTI and BIR registered.
Key Partners
The owners go personally to their only supplier which is Ong Yu Grocery to place an order of
ingredients. She do this every two weeks. Their supplier will then deliver the ingredients to the
bakery.
Key Resources
They use human resources such as a trustworthy manager, a polite store attendant, and a good
baker. The capital of the business solely came from the owners, which grew and accumulated
over the years of operations.

Consulting Firm Logo
The book of exodus in the bible has a particular scene wherein God told his people to be
still because he will fight for them. In the same way, the firm gives their clients the same assurance
that it would go beyond the odds to give excellent services. Thus, the name: Exodus.
The tree itself represents knowledge while the ‘leaves’ represents a network. Exodus values
network as it is one of the most important features of a consultancy firm. A big network allows the
firm to give exceptional services because it helps them reach experts who can aid them with regards
to clients’ needs.
The Gold bar represents the golden rule: Do unto others as you would have them do unto
you. The Exodus puts itself in the shoes of its clients. The firm approach the needs of the clients
as if it was their own problem because empathy towards the clients builds a strong foundation of
trust and at the same time, facilitates smooth transition of solving the problem. The Gold bar also
represents the firm’s goal to build wealth. The emblem with a check mark represents integrity.
Lastly, the colour orange represents creativity. The firm pursues innovation to continuously
provide great services.

Facts and Findings
Tables 1-3: Week 1 to Week 3 Actual Demand of Products
Week 1 Mon Tue Wed Thurs Fri Sat Sun TOTAL AVERAGE
Pandesal 380 400 375 360 375 390 380 2660 380
Spanish
Bread 320 330 290 310 325 355 345 2275 325
Cheese Roll 280 250 265 305 245 270 310 1925 275
Crinkles 175 135 130 150 130 145 150 1015 145
Cheese Bread 220 190 190 225 245 250 220 1540 220
Cookies 125 120 135 105 95 110 115 805 115
Hopia 130 120 125 115 135 110 140 875 125
Coconut
bread 120 105 115 115 120 95 100 770 110
Monay 130 135 120 110 150 155 145 945 135
Kababayan 90 105 85 90 90 105 100 665 95
Pandesal 410 395 420 420 430 440 425 2940 420
Spanish
Bread 350 365 355 360 345 340 370 2485 355
Cheese Roll 350 320 340 330 335 325 345 2345 335
Crinkles 180 175 185 170 155 190 170 1225 175
Cheese
Bread 170 175 165 190 160 200 165 1225 175
Cookies 75 70 95 80 65 80 95 560 80
Hopia 85 95 100 90 90 100 105 665 95
Coconut
bread 125 140 130 125 140 130 120 910 130
Monay 190 175 185 175 185 170 180 1260 180
Kababayan 115 105 100 105 120 115 110 770 110
Pandesal 400 395 410 400 400 405 390 2800 400
Spanish
Bread 350 360 395 390 370 370 355 2590 370
Cheese Roll 270 260 285 300 305 300 310 2030 290
Crinkles 110 140 130 135 135 140 120 910 130
Cheese
Bread 195 225 220 225 195 195 180 1435 205
Cookies 90 95 105 120 115 110 100 735 105
Hopia 75 60 75 95 95 80 80 560 80
Coconut
bread 125 130 125 135 110 115 100 840 120
Monay 215 215 225 245 220 235 220 1575 225
Kababayan 115 115 130 155 125 120 115 875 125
Table 4: Summary of Weekly Demand and Forecast
Average
Week 1 Week 2 Week 3 Total (Forecast)
Pandesal 380 420 400 1200 400
Spanish Bread 325 355 370 1050 350
Cheese Roll 275 335 290 900 300
Crinkles 145 175 130 450 150
Cheese Bread 220 175 205 600 200
Cookies 115 80 105 300 100
Hopia 125 95 80 300 100
Coconut bread 110 130 120 360 120
Monay 135 180 225 540 180
Kababayan 95 110 125 330 110
Table 5: Schedule of Product Prices, Demand, Units Produced and Production Priority
Products Demand Units Surplus CMxDemand Priority

Price CM/unit
(daily) Produced (Shortage)
2 360 (40) 404 1st
Pandesal 400 1.01
2 320 (30) 269.50 3rd
Spanish Bread 350 0.77
2 280 (20) 177 4th
Cheese Roll 300 0.59
3 140 (10) 133.50 6th
Crinkles 150 0.89
2 230 30 124 7th
Cheese Bread 200 0.62
2 140 40 67 10th
Cookies 100 0.67
4 120 20 111 8th
Hopia 100 1.11
Coconut (20) 166.80 5th
3 100
bread 120 1.39
6 120 (60) 318.60 2nd
Monay 180 1.77
2 80 (30) 67.10 9th
Kababayan 110 0.61
1,890 (120) 1,838.50
Total 2,010
Table 6: Computation of Contribution Margin per Unit of Products
PRODUCTS SELLING EST. DIRECT EST. LABOR EST. VARIABLE

PRICE MATERIAL COST COST COST CM PER UNIT
Pandesal 2 0.85 0.10 0.04 1.01
Spanish Bread 2 0.9 0.23 0.10 0.77
Cheese Roll 2 0.9 0.36 0.16 0.59
Crinkles 3 1.7 0.28 0.13 0.89
Cheese Bread 2 1.1 0.20 0.09 0.62
Cookies 2 1 0.23 0.10 0.67
Hopia 4 2.3 0.41 0.18 1.11
Coconut bread 3 1.1 0.36 0.16 1.39
Monay 6 3.5 0.51 0.23 1.77
Kababayan 2 0.88 0.36 0.16 0.61
The consultants used average method in forecasting the daily demand. The management
provided records on the daily demand for three weeks. The daily demand was computed by
adding the shortage and subtracting the surplus with the actual production for each product.
Afterwards, the consultants computed the average demand per week. From there, the average
weekly demand for three weeks was averaged to get the demand forecast.
The consultants identified that the root problem is the inventory management of the bakery.
The company makes its products based on the full capacity of the oven. They produce as many as
they can without considering the actual demand and contribution margin for each product resulting
into shortage and surplus of the goods.
The daily demand column is provided by the management. During the interview, they gave
the demand estimates for each product. When some of the products are already sold out, some
customers still want to buy them thus resulting to shortage of products. The management estimated
the demand by adding the products sold and the estimated shortage. Meanwhile, the surplus is
identified by comparing the remaining inventory at the end of the day and the units produced that
can be found in the records of the bakery.
The management gave the consultants the fixed amount of daily production which is based
on their oven’s capacity. Since the capacity of the oven is fixed to produce a total of 1,890 breads,
increasing the production of a specific product will result into a reduction of another.
The shortage/surplus column is computed by deducting the demand and units produced
column. The contribution margin per unit is computed by subtracting the provided selling price
per unit and total manufacturing cost.

The consultants multiplied the contribution margin per unit and the demand to get the
product with the highest input to the total income. Afterwards, the consultants prioritized each
products based on highest contribution margin.
Another, the bakery does not maintain proper inventory recording system. The bakery’s
inventory system only records the units sold for each day. Because of this, they cannot track if the
units produced satisfy the demand of each product. There is a shortage of products with high
contribution margin while there is a surplus of products with low contribution margin.
Furthermore, the excess products goes to waste resulting to loss for the company.
Current Inventory Process of Allaine’s Bakery
The consultants asked the owner of the bakery regarding the inventory flow and production
process of the business. During the interview and observation, the following steps for the business
inventory process were identified:
1. The baker will check the remaining inventory of ingredients and determine which one and
how much should be bought. The baker will create a list for these ingredients and will give
it to the bakery owner.
2. The bakery owner will ask the store attendant to buy the said ingredients.
3. After the ingredients were bought, the store attendant will bring the items to the bakery
owner for the inspection and verification of expenses.
4. The verified items will then be given to the baker.
5. The baker will store them in the kitchen together with the other goods.
6. The baker will use the ingredients to bake the pre-determined number of breads to produce
every day.
Record Keeping
The bakery’s recordkeeping process involve the following facts:
1. The bakery owner is responsible for the safekeeping of the receipts of purchases.
2. After the products are sold out, the bakery records the shortage of products by taking note
of all the customer who are still asking for the products.
3. At the end of the day, the bakery will compare the pre-determined units of production with
the actual units sold. From there, the surplus of the products are identified.
Conclusion
Because the bakery business model of selling optimally fresh offering creates so much
potential for waste, the company should establish approaches on how to control losses from unsold
products. Based on the findings, the consultants conclude that the company needs to apply one of
the following alternatives:
Solution A: Turn leftovers into other baked goods-they can use leftovers to make bread pudding
and french toast. They can also rework them by processing them into a value-adding ingredient
that can be added back to the recipe along with other dry ingredients.
Solution B: Create a baking schedule-they need to make a schedule to know which items sell
quickly at specific times of the day or specific days of the week. Baking these quick selling items
before peak selling hours will reduce the amount of leftovers that must be discarded.
Solution C: Measure accurately- they must ascertain that recipes are followed precisely and
accurately. They should use the right measuring cups, spoons and liquid measuring tools for wet
ingredients and scale for dry ingredients to ensure a precise measurement.

Solution D: Inspecting baking equipment-they should make sure that their equipment is running
effectively. Otherwise, this can result into burnt food, undercooked food, or even over mixed food.
Solution E: Bake and sell products based on demand priority-they need to decrease the production
of goods with surplus to make room for products with high demand and reasonable profit margin.
Recommendation
Based on the information gathered and analyzed by the consultants and the examination of
findings and alternative solutions, the consultants recommend to Allaine’s Bakery to use Solution
E which is to bake and sell products based on demand priority. It is the best one among the
alternatives to further improve the business operations and maintain good control in its inventory
management.
One reason used as the basis for this recommendation is that it is easy and safe to
implement. As mentioned, due to its nature to sell freshly baked products, they really cannot avoid
to have leftovers. With that, they should stop producing the goods with low demand. Instead, they
need to focus on producing the goods with high demand and reasonable profit margin.
Another is if the company bakes their products to fill available space rather than to satisfy
customer demand, it really can create significant waste. The amount of shelf and promotional space
allocated to bakery products should be reviewed and, where necessary, reduced. Also, care should
be taken to avoid unnecessary overproduction which can lead to waste. Available bakery reports
and the production plan should be reviewed to help ensure that the right decisions are being made
and that seasonal variations and demand factors are not being missed or applied twice.
Eventually, they need to improve marketing strategy for these chosen products. They can
offer free sample of some products to achieve consumer interest and desire. They can also give
free items and discounts to their loyal customers. Also, they should distribute flyers within and
outside their business so that people will know more about the bakeshop and their products.
Implementation Guide
Table 7: Implementation Guide
ACTIVITY RESPONSIBLE PERSON DURATION

1. Preparation of the documents of the existing Owners 1 day
inventory
 They must gather the documents pertaining
to the existing inventory of the business.
They may use Microsoft Excel as their tool.
2. Monitor and record the daily demand of the Store attendant 3 weeks
products
 They must record the daily demand of each
of the products to know which product has
the highest to lowest demand.
3. Compare the demand of the products and the units Owner 3 weeks
produced
 They must compare the demand and units
produced to know which of these product has
surplus.
4. Compute for the contribution margin of each Owner 1 hour
product
 They must compute for the contribution
margin of the product and rank them from
high to low to know which product should be
eliminated and prioritized.
5. Produce only the goods with high demand and Baker Every
reasonable contribution margin production
 They should bake and sell the products based
on the priority. They need to focus on the
production of goods which will surely be
sold and has high return to avoid losses.
APPENDICES
APPENDIX A: Engagement Proposal Letter
Lina C. Lingat
Owner Manager
Allaine’s Bakery
Moras Dela Paz, Sto. Tomas, Pampanga
Dear Mrs. Lina C. Lingat,
Greetings!
We are students from School of Business and Accountancy of Holy Angel University and
we are currently taking up our Management Consultancy subject, wherein, a requirement for the
course subject is to provide a consulting engagement service.
We would like to extend our appreciation for giving us the opportunity to meet with you
and discuss your current business problem and to discuss ways in which Exodus Consulting Firm
can be a help to Allaine’s Bakery. We assure you that we have suitable and sufficient skills and
knowledge to assist in your business’ inventory management.
This constitutes as a proposal given to Allaine’s Bakery to assist in the engagement

relating to the business’ inventory management which is understood, supported, and effectively
executed by the members of management.
During the pre-assessment conducted on the company, we identified that the company
incurs bakery losses from unsold products due to lack of inventory management which in effect
causes the spoilage of excess inventory.
The identified general objectives are to:
1. Determine the best selling products with reasonable profit margin.

2. Improve marketing strategy for bakery products
3. Establish waste management and elimination strategies
For the purpose of the engagement, we propose a four-phase approach to meet the
objectives of the improvement of the inventory management of the business. The Phases are
described as follows:
1. Gather insights about the performance of organization with inventory management.
2. Relate how having approaches to control loss of unsold products will help the company.
3. Identify loss control approaches that will be useful to the business.
4. Implementation of chosen loss control approaches.
The consulting team will consist of five consultants namely, Dangeline Amistad, Krystle
Shane De Guzman, Axeilou Isseymiyaki Labrynt Gopiao, Jennifer Quicho and Louise Joy
Tanglao of Exodus Consulting Firm. Louise Joy Tanglao will be the engagement manager and
she will set objectives, master plans, tasks, methodologies, responsibilities, and measurements.
Under her direction, the team will provide objective assessment of inventory management of the
business and propose ways to improve its inventory management.
As the engagement manager, Louise Joy Tanglao will recommend approaches that will be
useful in controlling losses from unsold products of the business. She will obtain resources and
coordinate and synthesize work of these resources in order to implement the said approaches. The
core team will recommend and obtain methodologies needed to implement the approaches.
The consulting team will assist Allaine’s Bakery in achieving its objectives over the term
of the engagement:
Preparation
The engagement team will contact the owner of the company to inform them about the
scheduled interview that will be conducted in order to start the engagement. The consulting team
will prepare a questionnaire that will be given to the manager. Questionnaires are simple and
mainly answerable by “yes or no” and therefore are not needed to be sent to the company
beforehand.
Coordination
The engagement manager is tasked to be in touch and coordinate directly with the
company manager, during the course of performing the engagement. The engagement members
are expected to help the engagement manager in performing the engagement by assisting and
helping her upon gathering, analyzing, and keeping the data given by the company. The company
are expected to provide necessary information relation to its inventory management.
Facilitation
Phase 1 and 4 will be conducted in the company’s premises. Phases 2 and 3 are expected
to be done in consulting firm’s office.
Risk and Opportunity Management
The engagement team, specifically the engagement manager will evaluate the engagement
teams objectivity and independence during the course of the engagement.
The expected outcomes of the major activities are as follows:
1. To increase understanding about the company and its environment by conducting a

background check to the company.
2. To understand the problem the company is facing by asking the manager about its
inventory management system.
3. To identify the main problem and the root cause by asking the manager about its inventory
flow.
4. To formulate recommendations and improvements to company’s inventory management

by analyzing the root cause and main problem in order to solve the problem.
In conclusion of the services to be rendered as requirements for the course subject

Management Consultancy for the degree of BS in Accountancy, the company shall be free from
fees of payments for professional fees.
Based upon our discussion, attached here is a sample of proposed contract which includes
a detailed project work plan. Based on our preliminary discussions, it reflects an approach
believed will allow us to meet your needs.
Should you be interested in proceeding with this project, we will be able to meet with you.
Should you have any questions about this proposal, please do not hesitate to contact us through
0935-524-7789 or email us at exodusconsultingfirm@gmail.com.
We look forward to hearing from you and working with you.
Respectfully,
Louise Joy C. Tanglao
Exodus Consulting Firm
Accepted and affirmed by:
Lina C. Lingat
Allaine’s Bakery
APPENDIX B: ENGAGEMENT WORK PLAN
Project Goal Statement: To determine approaches on how to control bakery losses from unsold
products of Allaine’s Bakery, thereby increasing profits.
Activity Inputs Time Frame Responsible Person Anticipated Outputs
Dangeline Amistad,
Conduct a site visit Transportati Observations of the
Axeilou Gopiao,
and interview with on expense July 13, 2019 site and interview
Shane De Guzman,
the client (120.00) results
Louise Tanglao
Analyze and
Shane De Guzman, Determination of the
evaluate the Interview
July 20, 2019 Axeilou Gopiao, symptom and root
information results
Louise Tanglao problems
gathered
Follow-up
Transportati
interview and August 14, Dangeline Amistad, Documents and data
on Expense
collection of 2019 Jennifer Quicho of the company
(60.00)
documents
Determine the best Current

selling product with demand and August 20, All engagement Schedule of priority
reasonable profit price 2019 Personnel of production
margin schedules
Improve marketing Recommendation of

Current
strategies and approaches on how
inventory August 27, All engagement
establish waste to control bakery
managemen 2019 Personnel
management losses from unsold
t
approaches products
APPENDIX C: INTERVIEW TRANSCRIPT
 How many bread do you produce every day?
: I think it’s around 1500+. You can check it on the oven, there’s a list posted there.
 How many do you sell?
: Ofcourse it varies every day. I can give you the sale records.
 What products do you sell? Which is the most profitable?
: We sell pandesal, cheese bread, etc. (gives list) I think it’s pandesal that’s why it is our most
produced bread.
 How many days do you operate in a week?
: We’re open 7 days a week.
 Do you sell out all your products every day?
: No, some products are sold out and some are not.
 What do you do with the unsold products?
: Sometimes we eat a few of them. Most of the time, we give them to the street children who
usually goes here at closing time. If the street children were not around, the products go to waste.
 Are there times that you experience shortage of products?

: Yes, we record those shortages.
 How do you record those shortages?
: Every time a product sells out, we record the number of products that are still asked by the
customers.
 Then why don’t you just produce them based on customers’ demand?
: It’s too risky because if we do that, other products will be dropped from production due to lack
of oven capacity. Also, the demand varies every day so we do not know how many products will
be sold the next day.
 When do you usually buy your ingredients? Is there a specific schedule that you follow?
: We buy the ingredients whenever the baker informs us that we’re already running out of stocks.
But usually, it takes 2 weeks.
 Aside from product shortage/surplus, what are the other problems that you encounter?
: I think there are no other major problems in our business right now. Maybe it’s just the lack of
equipment, because we only have one oven.
APPENDIX D: ESTIMATED STATEMENTS
STATEMENT OF FINANCIAL POSITION
ASSETS
CURRENT ASSETS
Cash 86,500
Inventory 45,000 131,500
NON-CURRENT ASSETS
Equipment, net 57,000
Other non-current assets 20,000 77,000
TOTAL ASSETS 208,500
LIABILITIES AND EQUITY
Accounts payable 1,500
Owner’s capital 207,000
TOTAL LIABILITIES AND EQUITY 208,500
APPENDIX E: DOCUMENTATION
APPENDIX F: CURRICULUM VITAE
DANGELINE VENTURA AMISTAD

Balut St., Sapa, Sto. Tomas, Pampanga
danjamistad@gmail.com
09059362023
Objective
To effectively apply my knowledge in accounting related activities and to further enhance

my knowledge, develop my personality, and to contribute for the betterment of the company.
And to join an organization that will strengthen my skills, helps to achieve my fullest potentials,
and provide meaningful experiences.
Personal Background
Date of Birth : January 31, 1999

Place of Birth : Laoag City, Ilocos Norte
Civil Status : Single
Nationality : Filipino
Religion : Roman Catholic
Educational Background
Bachelor of Science in Accountancy

Angeles City, Pampanga
(2019 - Present)
Bachelor of Science and Accounting Technology

Angeles City, Pampanga
Pampanga High School

City of San Fernando, Pampanga
Sapa Elementary School

Sapa, Sto. Tomas, Pampanga
Valedictorian
Work Experience
1. Working student – Holy Angel University (November 2017 – Present)

2. Special Program for Employment of Student (SPES) (Summer 2015 - 2018)
3. On-the-job trainee at Romeo G. Torno & Co. CPAs (December 2018 - February 2019)
Skills and Abilities
1. Computer Literate – Microsoft Office Word, Excel and PowerPoint

2. Basic Accounting Skills
3. Responding telephone calls
4. Good interpersonal and communication skills
5. Willing to increase my knowledge
6. Organized and independent with great time management skills
Achievements
 Magna Cum Laude - Holy Angel University

 Valedictorian - Sapa Elementary School
Affiliation
o Junior Philippines Institute for Accountants (JPIA)

Member ( 2015 - Present)
Character References
 Dr. Flor Mangalino
1. Professor
2. Holy Angel University
3. 0933 454 1731
 Ms. Kathrina David
a. Internal Auditor
b. SGV Co.
c. 09178028501
 Mr. Ednel Datu
1. Professor
2. Holy Angel University
3. 09265320272
I hereby certify that the above information is true & correct based on my knowledge and ability.
Dangeline V. Amistad
Applicant’s Signature
Krystle Shane M. De Guzman

#297, Purok 3, San Juan, San Luis, Pampanga
Contact No. : 0955 053 1747
kryshdg@gmail.com
CAREER OBJECTIVE
To obtain an experience and opportunity where I can practice my knowledge and experience, utilize
my skills, and make a positive contribution. To bring out and harness the best of my potentials for the
organization’s benefit, the community, as well as gain experience and further my knowledge on the field.
PERSONAL INFORMATION:
Gender : Female
Age : 19
Date of Birth : December 17, 1999
Place of Birth : San Matias, Pampanga
Civil Status : Single
Citizenship : Filipino
Religion : Roman Catholic
Name of Father : Arnaldo M. De Guzman
Name of Mother : Mary Grace M. De Guzman
EDUCATIONAL ATTAINMENT:
Tertiary (2015-present) Holy Angel University

#1 Holy Angel Avenue, Sto. Rosario, Angeles City
Secondary (2011-2015) San Juan High School

San Juan, San Luis, Pampanga
Primary (2005-2011) San Juan Elementary School

San Juan, San Luis, Pampanga
ACHIEVEMENTS:
Dean’s Lister 1st Year, 1st Semester
Dean’s Lister 1st Year, 2nd Semester
Dean’s Lister 2nd Year, 1st Semester
Dean’s Lister 2nd Year, 2nd Semester
Dean’s Lister 3rd Year, 1st Semester
Dean’s Lister 3rd Year, 2nd Semester
Magna Cum Laude 4th Year, 1st Degree
QUALIFICATIONS:
 Literate in Microsoft Office Applications

 Basic Bookkeeping
 Verbal and written communication skills
 Oriented in SAP Business One
 Problem Analysis and Resolution
 Records Organization
AFFILIATION:
Junior Philippine Institute of Accountants

Member
A.Y. 2015 - Present
REFERENCES:
Louize J. B. Posillo, CPA Accounting Professor

0945 324 1714
Ednel T. Datu, CPA Accounting Professor

0926 532 0272
I hereby certify that the above information is true and correct to the best of my knowledge and belief.
Krystle Shane M. De Guzman

Applicant
AXEILOU ISSEYMIYAKI LABRYNT P. GOPIAO

86 Dolores Homesite City of San Fernando Pampanga
Contact Number: 0905-755-0014
Email Address: axgopiao@gmail.com
CAREER OBJECTIVE
In quest of an opportunity where I can apply my knowledge and experience and make a
positive contribution to the organization. To comprehend my potential and further my
knowledge on the field and add value to the organization with inspiring performance.
EDUCATIONAL BACKGROUND

Tertiary level (2015 – Present) Holy Angel University
Sto. Rosario St., Angeles City
St. Scholasatica’s Academy

Secondary level (2011 – 2015)
Brgy. San Agustin, San Fernando, Pampanga
St. Scholastica’s Academy

Brgy. San Agustin, San Fernando, Pampanga
2008 - 2011
Primary level
Mary the Queen Academy of Pampanga
McArthur Highway, Bacolor, Pampanga
2005 -2008
ACHIEVEMENTS
Dean’s Lister Holy Angel University
1st Year, First and Second Semester (2015 – 2016)
2nd Year, First and Second Semester (2016 – 2017)
3rd Year, First and Second Semester (2017 – 2018)
4th Year, First and Second Semester (2018-2019)
WORK EXPERIENCE
 Southsea Holdings Corporation & HG Property Rentals

 Dolores Homesite City of San Fernando Pampanga
 April 2017 – August 2017
 Petty Cash Custodian and Rent Collector
 VOF Accounting Solution and Consultancy Services
 Plaza Cristina Building, Dolores San Fernando Pampanga
 December 2018 – March 2019
 Internship
 Commission on Audit (COA)
 San Fernando, Pampanga
 April 2019 – May 2019
 Staff
SKILLS AND QUALIFICATIONS
 Literate in MS Office (Word, Excel, Powerpoint)

 Verbal and Written Communication Skills
 Able to adapt to new environment
 Familiar with basic Bookkeeping
 Willing to learn
 Time management
AFFILIATIONS

Member
A.Y. 2017 - Present
PERSONAL INFORMATION
Date of Birth: August 5, 1999 Nationality: Filipino

Civil Status: Single Age: 19
CHARACTER REFERENCES
Ednel T. Datu, CPA Rolly Guevarra

Accounting Professor – Holy Angel University Accounting Instructor – Holy Angel University
0926 532 0272 0945 324 4737
LOUISE JOY CUEVAS TANGLAO

#159 Station Sto. Cristo, Mexico, Pampanga
louisejoy.lt@gmail.com
0935-524-7789
OBJECTIVE
To employ the knowledge and skills I acquired from school and to gain new experiences
and learnings through this training in order to comprehend my potential and add to the growth of
the organization with inspiring performance.
EDUCATION
Tertiary
Holy Angel University 2015-present
#1 Holy Angel Avenue, Sto. Rosario St., Angeles City, Pampanga
Secondary
Mexico National High School 2011-2015
Balas, Mexico, Pampanga
AFFILIATION
Member | 2015-present
HONORS AND ACHIEVEMENTS
 Dean’s Lister, Academic Year 2015-2016 1st and 2nd Semester

QUALIFICATION AND SKILLS
 Knowledgeable in Accounting
 Computer Literate (MS Office and SAP Software)
 Detail-oriented and Responsible
 Hardworking and Fast learner
 Fluent in English
CHARACTER REFERENCES:
 MS. EMILY C. SUNGA, CPA, MM
Professor, School of Business and Accountancy

0908-887-8175
 MR. MICHAEL JEROME C. DELA PEÑA, CPA
Professor, School of Business and Accountancy

0917-316-9491
I hereby certify that the above information is true and correct to the best of my knowledge and
belief.
LOUISE JOY C. TANGLAO

Applicant

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HOLY ANGEL UNIVERSITY

Inventory Management Service for Allaine’s Bakery

Fifth Year Bachelor of Science in Accountancy Students of

Holy Angel University

Holy Angel University

to the sole discretion of the company.

Mrs. Lina C. Lingat

consideration, this engagement would not be accomplished.

encouraging them throughout the engagement period.

as a leading enterprise in its industry.

cooperation while conducting the engagement.

The objective of this engagement is to determine approaches on how to control bakery

assist the business by:

 Determining the best selling product with reasonable profit margin;

 Improving marketing strategy for bakery products; and

 Establishing waste management and elimination strategies.

the losses from its unsold products to increase its profits.

Evaluation Phase Data Collection Phase Identification of possible

Development Phase Analysis and

End Termination Phase Follow-up Procedure

occur during the engagement.

Acceptance of the Engagement

Clarifying Business Objectives

Identification of Possible Problems

transpire during the engagement.

II. Data Collection Phase

contribution margin of each product to arrive to a better solutions and recommendations.

III. Evaluation Phase

possible approaches to the problem.

IV. Development Phase

Analysis and Conclusion

team will identify the procedures to be followed.

also be monitored through a follow-up procedure.

will also be instructed on how to implement the said procedure.

team can provide assistance to client if the situation requires to do so.

Business Model Canvas

breads after eating them.

through word of mouth.

over the years of operations.

Consulting Firm Logo

provide great services.

Facts and Findings

Tables 1-3: Week 1 to Week 3 Actual Demand of Products

Table 4: Summary of Weekly Demand and Forecast

Products Demand Units Surplus CMxDemand Priority

Table 6: Computation of Contribution Margin per Unit of Products

PRODUCTS SELLING EST. DIRECT EST. LABOR EST. VARIABLE

into shortage and surplus of the goods.

can be found in the records of the bakery.

per unit and total manufacturing cost.

products based on highest contribution margin.

Current Inventory Process of Allaine’s Bakery

inventory process were identified:

it to the bakery owner.

owner for the inspection and verification of expenses.

4. The verified items will then be given to the baker.

The bakery’s recordkeeping process involve the following facts:

the following alternatives:

ingredients and scale for dry ingredients to ensure a precise measurement.

Table 7: Implementation Guide

ACTIVITY RESPONSIBLE PERSON DURATION

APPENDIX A: Engagement Proposal Letter

Moras Dela Paz, Sto. Tomas, Pampanga