Note 2: Cost of Sales

Schedule 2022 2023 2024 2025

Direct Materials 4 421,640.00 461,695.80 505,556.90 553,584.81
Add: Direct Labor 5 895,776.00 940,564.80 987,593.04 1,036,972.69
Employee Benefits 6 64,512.00 71,806.80 77,922.14 84,379.36
Factory Overhead 7 67,039.73 60,491.88 62,831.80 64,910.64
Cost of Sales 1,448,967.73 1,534,559.28 1,633,903.88 1,739,847.49
 2026
606,175.36
1,088,821.33
91,570.71
68,959.65
1,855,527.05
Schedule 4: Direct Materials
2022
Box 137,256.00
Ribbon 13,960.00
Fairy Light 50,856.00
Flower 62,200.00
Bouquet Wrap 124,400.00
Shredded Paper 12,040.00
Zink Paper 2,730.00
Photo Paper 6,962.00
Scented paper 7,336.00
Balloons 3,900.00
Total Raw Materials 421,640.00

Schedule 5: Direct Labor

2022
Daily Salary of Manager 480.00
Multiply by: Working Days 301
Yearly Compensation of Manager 144,480.00
Daily Salary of Assistant Manager 448.00
Multiply by: Working Days 301
Yearly Compensation of Asst. Manager 134,848.00
Daily Salary of Florist 448.00
Multiply by: Working Days 301
Yearly Compensation of Florist 134,848.00
Daily Salary of Cashier 400.00
Multiply by: Working Days 301
Yearly Compensation of Cashier 120,400.00
Daily Salary of Tele-Worker 400.00
Multiply by: Working Days 301
Yearly Compensation of Tele-Worker 120,400.00
Daily Salary of Worker A 400.00
Multiply by: Working Days 301
Yearly Compensation of Worker A 120,400.00
Daily Salary of Worker B 400.00
Multiply by: Working Days 301
Yearly Compensation of Worker B 120,400.00
Direct Labor 895,776.00
Schedule 6: Employee Benefits
2022
SSS Monthly Contribution for Manager 540.00
Multiply by: No. of Months 12
Total 6,480.00
SSS Monthly Contribution for Assistant Manager 495.00
Multiply by: No. of Months 12
Total 5,940.00
SSS Monthly Contribution for Florist 495.00
Multiply by: No. of Months 12
Total 5,940.00
SSS Monthly Contribution for Cashier 450.00
Multiply by: No. of Months 12
Total 5,400.00
SSS Monthly Contribution for Tele-worker 450.00
Multiply by: No. of Months 12
Total 5,400.00
SSS Monthly Contribution for Worker A 450.00
Multiply by: No. of Months 12
Total 5,400.00
SSS Monthly Contribution for Worker B 450.00
Multiply by: No. of Months 12
Total 5,400.00
Total Annual SSS Contribution 39,960.00
PhilHealth Monthly Conttribution of Manager 210.00
Multiply by: No. of Months 12
Annual Contribution 2,520.00
PhilHealth Monthly Conttribution of Assistant Manager 196.00
Multiply by: No. of Months 12
Annual Contribution 2,352.00
PhilHealth Monthly Conttribution of Florist 196.00
Multiply by: No. of Months 12
Annual Contribution 2,352.00
PhilHealth Monthly Conttribution of Cashier 175.00
Multiply by: No. of Months 12
Annual Contribution 2,100.00
PhilHealth Monthly Conttribution of Tele-worker 175.00
Multiply by: No. of Months 12
Annual Contribution 2,100.00
PhilHealth Monthly Conttribution of Workers 175.00
Multiply by: No. of Months 12
Annual Contribution 2,100.00
Multiply by No. of Workers 2
Total 4,200.00
Total PhilHealth Annual Contribution 15,624.00
Pag-Ibig Monthly Contribution of Manager 120.00
Multiply by: No. of Months 12
Annual Contribution 1,440.00
Pag-Ibig Monthly Contribution of Asst. Manager 112.00
Multiply by: No. of Months 12
Annual Contribution 1,344.00
Pag-Ibig Monthly Contribution of Florist 112.00
Multiply by: No. of Months 12
Annual Contribution 1,344.00
Pag-Ibig Monthly Contribution of Cashier 100.00
Multiply by: No. of Months 12
Annual Contribution 1,200.00
Pag-Ibig Monthly Contribution of Tele-worker 100.00
Multiply by: No. of Months 12
Annual Contribution 1,200.00
Pag-Ibig Monthly Contribution of Workers 100.00
Multiply by: No. of Months 12
Annual Contribution 1,200.00
Multiply by: No. of Workers 2
Total 2,400.00
Total Annual Pag-Ibig Contribution 8,928.00
Total Employee Benefits 64,512.00

Schedule 7: Factory Overhead

Schedule 2021
Production Supplies 8 9,337.00
Cleaning Supplies and Materials 9 5,218.00
Other Supplies 10 5,628.00
Advertising expense 5,000.00
Utilities expense 4,500.00
Rent Expense 15,000.00
Depreciation Expense 20,324.30
Repair and Maintenance 2,032.43
Supplies Expense
Total Factory Overhead 67,039.73
2023 2024 2025 2026
150,295.32 164,573.38 180,207.85 197,327.59
15,286.20 16,738.39 18,328.54 20,069.75
55,687.32 60,977.62 66,770.49 73,113.69
68,109.00 74,579.36 81,664.39 89,422.51
136,218.00 149,158.71 163,328.79 178,845.02
13,183.80 14,436.26 15,807.71 17,309.44
2,989.35 3,273.34 3,584.31 3,924.81
7,623.39 8,347.61 9,140.64 10,009.00
8,032.92 8,796.05 9,631.67 10,546.68
4,270.50 4,676.20 5,120.44 5,606.88
461,695.80 505,556.90 553,584.81 606,175.36

2023 2024 2025 2026

504.00 529.20 555.66 583.44
301 301 301 301
151,704.00 159,289.20 167,253.66 175,616.34
470.40 493.92 518.62 544.55
301 301 301 301
141,590.40 148,669.92 156,103.42 163,908.59
470.40 493.92 518.62 544.55
301 301 301 301
141,590.40 148,669.92 156,103.42 163,908.59
420.00 441.00 463.05 486.20
301 301 301 301
126,420.00 132,741.00 139,378.05 146,346.95
420.00 441.00 463.05 486.20
301 301 301 301
126,420.00 132,741.00 139,378.05 146,346.95
420.00 441.00 463.05 486.20
301 301 301 301
126,420.00 132,741.00 139,378.05 146,346.95
420.00 441.00 463.05 486.20
301 301 301 301
126,420.00 132,741.00 139,378.05 146,346.95
940,564.80 987,593.04 1,036,972.69 1,088,821.33
2023 2024 2025 2026
610.20 689.53 779.16 880.46
12 12 12 12
7,322.40 8,274.31 9,349.97 10,565.47
559.35 632.07 714.23 807.08
12 12 12 12
6,712.20 7,584.79 8,570.81 9,685.01
559.35 477.50 520.00 562.50
12 12 12 12
6,712.20 5,730.00 6,240.00 6,750.00
508.50 574.61 649.30 733.71
12 12 12 12
6,102.00 6,895.26 7,791.64 8,804.56
508.50 574.61 649.30 733.71
12 12 12 12 13% increase
6,102.00 6,895.26 7,791.64 8,804.56
508.50 574.61 649.30 733.71
12 12 12 12
6,102.00 6,895.26 7,791.64 8,804.56
508.50 574.61 649.30 733.71
12 12 12 12
6,102.00 6,895.26 7,791.64 8,804.56
45,154.80 49,170.14 55,327.36 62,218.71
235.00 260.00 285.00 310.00
12 12 12 12
2,820.00 3,120.00 3,420.00 3,720.00
221.00 246.00 246.00 246.00
12 12 12 12
2,652.00 2,952.00 2,952.00 2,952.00
221.00 246.00 246.00 246.00
12 12 12 12
2,652.00 2,952.00 2,952.00 2,952.00
200.00 225.00 225.00 225.00
12 12 12 12
2,400.00 2,700.00 2,700.00 2,700.00
200.00 225.00 225.00 225.00
12 12 12 12
 2,400.00 2,700.00 2,700.00 2,700.00
200.00 225.00 225.00 225.00
12 12 12 12
2,400.00 2,700.00 2,700.00 2,700.00
2 2 2 2
4,800.00 5,400.00 5,400.00 5,400.00
ARA:17,724.00 19,824.00 20,124.00 20,424.00
120.00 120.00 120.00 120.00
12 12 12 12
ARA: 1,440.00 1,440.00 1,440.00 1,440.00
112.00 112.00 112.00 112.00
12 12 12 12
ARA: 1,344.00 1,344.00 1,344.00 1,344.00
112.00 112.00 112.00 112.00
12 12 12 12
ARA: 1,344.00 1,344.00 1,344.00 1,344.00
100.00 100.00 100.00 100.00
12 12 12 12
ARA: 1,200.00 1,200.00 1,200.00 1,200.00
100.00 100.00 100.00 100.00
12 12 12 12
ARA: 1,200.00 1,200.00 1,200.00 1,200.00
100.00 100.00 100.00 100.00
12 12 12 12
1,200.00 1,200.00 1,200.00 1,200.00
2 2 2 2
2,400.00 2,400.00 2,400.00 2,400.00
8,928.00 8,928.00 8,928.00 8,928.00
71,806.80 77,922.14 84,379.36 91,570.71

2022 2023 2024 2025

9,942.60 10,887.15 11,921.43 13,053.96
3,602.55 3,944.79 4,319.55 4,948.90
- 211.34 - 1,364.74
5,000.00 5,000.00 5,000.00 5,000.00
4,590.00 4,681.80 4,775.44 4,870.94
15,000.00 15,750.00 16,537.50 17,364.38
20,324.30 20,324.30 20,324.30 20,324.30
 2,032.43 2,032.43 2,032.43 2,032.43

60,491.88 62,831.80 64,910.64 68,959.65

5% increase
13% increase
 Cost of Assets 106,970.00
Salvage Value 5,348.50
Useful life 5 years

Year Book Value Annual DepreciatioAccumulated DepreBook Value at Year End

1 106,970.00 20,324.30 20,324.30 86,645.70
2 86,645.70 20,324.30 40,648.60 66,321.40
3 66,321.40 20,324.30 60,972.90 45,997.10
4 45,997.10 20,324.30 81,297.20 25,672.80
5 25,672.80 20,324.30 101,621.50 5,348.50
Value at Year End
Direct Materials
quantity Unit cost annually
Box 5,719 24.00 137,256.00
Ribbon 349 40.00 13,960.00
Fairy Light 1,304 39.00 50,856.00
Flower 2,488 25.00 62,200.00
Bouquet Wrap 4,976 25.00 124,400.00
Shredded Paper 301 40.00 12,040.00
Zink Paper 26 105.00 2,730.00
Photo Paper 118 59.00 6,962.00
Scented paper 262 28.00 7336.00
Balloons 130 30.00 3,900.00
Total 421,640.00

Schedule 8: Production Materials

2022 2023 2024
Scissors 105.00 - -
Stapler 152.00 - -
Staple Wire 1,800.00 1,971.00 2,158.25
Tape 3,000.00 3,285.00 3,597.08
Epson 3110 Refill Ink 4,280.00 4,686.60 5,131.83
Total Production Supplies 9,337.00 9,942.60 10,887.15

Schedule 9: Cleaning Supplies and Materials

2022 2023 2024
Dustpan 45.00 - -
Broom 200.00 - -
Door Mat 375.00 - -
Trash Bin 1,008.00 - -
Spin Mop Set 300.00 - -
Garbage Bags (100pcs) 1,350.00 1,478.25 1,618.68
Alcohol (1 liter) 1,940.00 2,124.30 2,326.11
Total Cleaning Supplies and Materials 5,218.00 3,602.55 3,944.79

Schedule 10: Other Supplies

2022 2023 2024
Light bulb 1,035.00 - -
Emergency lights 2,800.00 - -
Clock 500.00 - -
Batteries - Clock 193.00 - 211.34
Fire Extinguisher 1,100.00 - -
Total Other Supplies 5,628.00 - 211.34
Total Factory Overhead 13,278.00 2,023.00 2,446.67
 quantity unit cost annually

Scissors 3 35.00 105.00

Stapler 2 76.00 152.00
Staple Wire 50 36.00 1,800.00
Tape 100 30.00 3,000.00
Epson 3110 Refill Ink 4 1070.00 4,280.00
Total 1247.00 9,337.00

2025 2026
- -
- -
2,363.28 2,587.79
3,938.80 4,312.98
5,619.35 6,153.19
11,921.43 13,053.96

2025 2026 Price per unit Quantity

- - 45 1
- 219.00 100 2
- - 75 5
- - 336 3
- - 300 1
1,772.46 1,940.84 450 3
2,547.09 2,789.06 388 5
4,319.55 4,948.90

2025 2026 Price per unit Quantity

- 1,133.33 207 5
- - 1400 2
- - 250 2
- 231.41 96.5 2
 - - 1100 1
- 1,364.74
2,025.00 4,755.47
Working Capital is estimated by totaling projected expenses for the Year 1.

WORKING CAPITAL
2022 2023 2024
Advertising expense 5,000.00 5,000.00 5,000.00
Utilities expense 4,500.00 4,590.00 4,681.80
Rent Expense 15,000.00 15,000.00 15,750.00
Depreciation Expense 20,324.30 20,324.30 20,324.30
Repair and Maintenance 2,032.43 2,032.43 2,032.43
Supplies Expense
Insurance Expense
Interest Expense
Total 46,856.73 46,946.73 47,788.53
2025 2026
5,000.00 5,000.00
4,775.44 4,870.94
16,537.50 17,364.38
20,324.30 20,324.30
2,032.43 2,032.43

48,669.67 49,592.05