DEPARTMENT OF BUSINESS ADMNISTRATION

SUBMITTED TO: MR. AMIR ILLYAS

SUBMITTED BY: MUHAMMAD AHMAD
ROLL-NO: BBHM-F18-134
SUJECT: MANAGEMENT ACCOUNTING
 MYNOR Corporation manufactures and sells
SALES BUDGET
  Year 2 Quarters Year
  Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total
Budgeted unit sales 40,000 60,000 100,000 50,000 250,000
Selling price per unit 8$ 8$ 8$ 8$ 8$
Total sales 320,000 480,000 800,000 400,000 2,000,000

SCHEDULE OF EXPECTED CASH COLLECTION

Accounts receivable 65,000       65,000
1st quarter sales 240,000 80,000     320,000
nd
2 quarter sales   360,000 120,000   480,000
rd
3 quarter sales     600,000 200,000 800,000
th
4 quarter sales       300,000 300,000
Total sales collection 305,000 440,000 720,000 500,000 1,965,000

PRODUCTION BUDGET

  Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year

Budgeted unit sales 40,000 60,000 100,000 50,000 250,000
Add: desired ending inventory 18,000 30,000 15,000 21,000 21,000
Total units needed 58,000 90,000 115,000 71,000 334,000
Less: beginning inventory (12,000) (18,000) (30,000) (15,000) (75,000)
Required Production 46,000 72,000 85,000 56,000 259,000
 MATERIAL BUDGET
  Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Required Production 46,000 72,000 85,000 56,000 259,000
Raw material per unit 5 5 5 5 5
Production need 230000 360000 425000 280000 1295000
Add: desired ending
inventory 7,200 8,500 5,600 7,000 7,000
Total units needed 237200 368500 430600 287000 1323300
Less: beginning inventory 23,000 72,00 8,500 5,600 23,000
Raw material to be purchased 214,200 361,300 422,100 281,400 1,279,000
Per unit cost 0.8 0.8 0.8 0.8 0.8
Raw material purchased 171360 289040 337680 225120 1,023,200

SCHEDULE OF EXPECTED CASH PAYMENT

  Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year
Accounts payable 90,048       90,048
1st quarter purchase 102,816 68,544     171,360
2nd quarter sales   173,424 115,616   289,040
3rd quarter sales     202,608 135,072  
4th quarter sales       135,072  
Total cash disbursement 192,864 241,968 318,224 270,144 1,023,200