Individual Assignment

Master Budget
Course: Act202
Section: 09
Submitted to:
Rezwanul Mumtahin Husain (RMH1)
Submitted by
Shabab Ahmed
ID: 1811686030
Year Annual Sales Selling Price MOH rate Variable S & A Rate
2018 70 20 4.68 1.962
2019 74 23 5 2.00
2020 50 25 6 2.4

Entry Amount
Materials Per Unit (KG) 0.3
Direct Labor Per Unit 0.02
Fixed MOH Costs (2019) 3500 Tk
Fixed MOH Costs (2020) 3850 Tk
Fixed Sales & Administrative Expenses (2019) 1938 Tk
Fixed Sales & Administrative Expenses (2020) 1976.76 Tk
Sales & Administrative Depreciation Per Month (Taka) 50 Tk
Beginning Cash Balance 30000
Material Cost Per Plate(2019) 15 Tk
Material Cost Per Plate(2020) 16.5 Tk
Budgeted Sales unit(2021) 1600
Production Need (2021) 480

Some of Entries that I have assumed in order to complete the Master Budget of 2019 and 2020.
 Master Budget 2019

Sales Budget 2019

Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Budgeted Sales Unit 2294 2072 2294 2220 2294 2220 2294 2294 2220 2294 2220 2294

Selling Price per 23 23 23 23 23 23 23 23 23 23 23 23

unit
Total Budgeted 5276 4765 5276 5106 5276 5106 5276 5276 5106 5276 5106 5276
Sales 2 6 2 0 2 0 2 2 0 2 0 2

Sales Budget 2019

In the year 2018, 70 plates were being sold every day and in 2019 it has increased by 5 percent.
So, 73.5 plates were being sold in 2019. The Bhelpuriwala doesn’t sale half plates so; I am
considering that 74 plates are being sold at 2019. In 2018 the selling price per unit was 20 taka
but now it has increased by 15 percent and the new selling price is 23 Taka.

Production
Budget 2019

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec
Budgeted Sales 229 207 229 222 2294 222 229 229 222 229 222 229
4 2 4 0 0 4 4 0 4 0 4
(+) Desired Ending 414. 458. 444 458. 444 458. 458. 444 458. 444 458. 310
Inventory 4 8 8 8 8 8 8
Total Need 270 253 273 267 2738 267 275 273 267 273 267 260
8.4 0.8 8 8.8 8.8 2.8 8 8.8 8 8.8 4
(-) Beginning 460 414. 458. 444 458.8 444 458. 458. 444 458. 444 458.
Inventory 4 8 8 8 8 8
Required Production 224 211 227 223 2279.2 223 229 227 223 227 223 214
8.4 6.4 9.2 4.8 4.8 4 9.2 4.8 9.2 4.8 5.2

Production Budget 2019

The Desired ending inventory of January is 20 percent of the budgeted sales of February. The
production budget of 2018 was unavailable, for this reason I have assumed the beginning
inventory as 460 for the month January. And for February, the beginning inventory is the ending
inventory of January and so on respectively.
 Direct Material Budget 2019

Jan Feb March April May June July Aug Sep Oct Nov Dec

Production 2248. 2116. 2279. 2234. 2279. 223 229 227 2234. 2279. 2234. 2145.
4 4 2 8 2 4.8 4 9.2 8 2 8 2
Material Per unit 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
(Kg)
Production needs 674.5 634.9 683.7 670.4 683.7 670. 688. 683. 670.4 683.7 670.4 643.5
2 2 6 4 6 44 2 76 4 6 4 6
(+) Desired Ending 63.49 68.37 67.04 68.37 67.04 68.8 68.3 67.0 68.37 67.04 64.35 45.9
Inventory 2 6 4 6 4 2 76 44 6 4 6
Total Needs 738.0 703.2 750.8 738.8 750.8 739. 756. 750. 738.8 750.8 734.7 689.4
12 96 04 16 04 26 58 8 16 04 96 6
(-) Beginning 65 63.49 68.37 67.04 68.37 67.0 68.8 68.3 67.04 68.37 67.04 64.35
Inventory 2 6 4 6 44 2 76 4 6 4 6
Materials to be 673.0 639.8 682.4 671.7 682.4 672. 687. 682. 671.7 682.4 667.7 625.1
purchased 12 04 28 72 28 22 76 43 72 28 52 04
Cost of the Materials 1009 9597. 10236 10076 10236 100 103 102 10076 1023 10016 9376.
5.2 06 .42 .58 .42 83 16 36 .58 6.4 .28 56

Direct Material Budget 2019

Here I have assumed that there is 0.3 Kg or 300 grams of material per unit. Again I have
assumed the Beginning inventory of January as 65 because the direct material Budget of 2018
was unavailable. The desired ending inventory of January is 10 percent of production needs from
the month February and so on respectively. And the beginning inventory of February is the
desired ending inventory of January. And the cost of Materials per unit is 15 Taka.

Direct Labor Budget 2019

Janua Februa Marc April May June July Augu Septem Octob Novem Decem
ry ry h st ber er ber ber
Unit of 2248. 2116.4 2279 2234 2279 2234 229 2279. 2234.8 2279. 2234.8 2145.2
Production 4 .2 .8 .2 .8 4 2 2
Direct Labor Per 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
unit
Labor Hour 44.96 42.328 45.5 44.6 45.5 44.6 45.8 45.58 44.696 45.58 44.696 42.904
Required 8 84 96 84 96 8 4 4
Hourly Wage 150 150 150 150 150 150 150 150 150 150 150 150
rate
Total Direct 6745. 6349.2 6837 6704 6837 6704 688 6837. 6704.4 6837. 6704.4 6435.6
labor cost 2 .6 .4 .6 .4 2 6 6

Direct Labor Budget 2019

The direct labor per unit is 0.02 and it is constant throughout the year. By multiplying direct
labor per unit with the Unit of production, we got Labor hours required. I have assumed hourly
wage rate as 150 Tk. We got total direct labor cost by multiplying Hourly wage rate and labor
hour required.

MOH
Budget 2019

Janu Febru Marc April May June July Aug Septe Octo Novem Decem
ary ary h ust mber ber ber ber
Budgeted 44.96 42.32 45.58 44.69 45.584 44.6 45.8 45.5 44.696 45.58 44.696 42.904
DLH 8 8 4 6 96 8 84 4
Variable 5 5 5 5 5 5 5 5 5 5 5 5
MOH rate
Variable 224.8 211.6 227.9 223.4 227.92 223. 229. 227. 223.48 227.9 223.48 214.52
MOH Cost 4 4 2 8 48 4 92 2
Fixed Cost 3500 3500 3500 3500 3500 350 350 3500 3500 3500 3500 3500
0 0
Total 3724. 3711. 3727. 3723. 3727.92 372 372 3727 3723.4 3727. 3723.4 3714.5
84 64 92 48 3.5 9.4 .9 8 92 8 2

MOH Budget 2019

I have assumed the Variable MOH rate as 4.68 for the year 2018 and after 7 percent increase it
has become 5. Fixed MOH cost as 3500 taka for the year.

Selling and Administrative

Budget 2019
Janu Febru Mar Ap May June July Aug Septe Octo Nove Decem
ary ary ch ril ust mber ber mber ber
Budgeted Sales 2294 2072 229 22 2294 2220 2294 2294 2220 2294 2220 2294
4 20
Variable S and 2 2 2 2 2 2 2 2 2 2 2 2
A rate
Variable 4588 4144 458 44 4588 4440 4588 4588 4440 4588 4440 4588
Expenses 8 40
Fixed S and A 1938 1938 193 19 1938 1938 1938 1938 1938 1938 1938 1938
expenses 8 38
Total S and A 6526 6082 652 63 6526 6378 6526 6526 6378 6526 6378 6526
expenses 6 78
(-) Non Cash 50 50 50 50 50 50 50 50 50 50 50 50
expenses
Cash S and A 6476 6032 647 63 6476 6328 6476 6476 6328 6476 6328 6476
expenses 6 28
Selling and Administrative Budget 2019

The variable S and A rate are 2 and Fixed S and A expenses is 1938. In 2018 the fixed S and A
expenses were 1900 and after 2 percent increase, the amount is 1938 in 2019. Depreciation is
deducted from Total S and A expenses because it is a type of Non cash expense

Cash Budget 2019

Januar Februa March April May June July Augus Septem Octob Novem Decem
y ry t ber er ber ber
Beginning 30000 55720. 77686.8 103170. 127398. 15288 17710 20246 227945. 25217 277657. 301945
Cash Balance 78 8 94 48 3 3 2 74 3 34 .18
(+) Cash 52762 47656 52762 51060 52762 51060 52762 52762 51060 52762 51060 52762
Collection
Total Cash 82762 103376 130448. 154230. 180160. 20394 22986 25522 279005. 30493 328717. 354707
.8 88 94 48 3 5 4 74 5 34 .18
(-) Material 10095. 9597.0 10236.4 10076.5 10236.4 10083 10316 10236 10076.5 10236 10016.2 9376.5
Cost 2 6 2 8 2 8 .4 8 6
(-) Direct 6745.2 6349.2 6837.6 6704.4 6837.6 6704. 6882 6837. 6704.4 6837. 6704.4 6435.6
Labor Cost 4 6 6
(-) MOH 3724.8 3711.6 3727.92 3723.48 3727.92 3723. 3729. 3727. 3723.48 3727. 3723.48 3714.5
4 4 5 4 9 92 2
(-) S and A 6476 6032 6476 6328 6476 6328 6476 6476 6328 6476 6328 6476
Cash Balance 55720. 77686. 103170. 127398. 152882. 17710 20246 22794 252173. 27765 301945. 328704
8 Tk 88 Tk 94 Tk 48 Tk 54 Tk 3 Tk 2 Tk 6 Tk 28 Tk 7 Tk 18 Tk .5 Tk

Cash Budget 2019

Here I have assumed the beginning cash balance of January as 30,000 Taka because cash budget
of 2018 was unavailable. I have added the beginning cash balance with the budgeted sales of
January 2019. After adding the beginning cash balance and budgeted sales, I deducted the all the
expenses and got the ending cash Balance of January. The ending cash balance of January is the
beginning cash balance of February, and by this way we have repeated the process for this year.
 Master Budget 2020

Sales Budget 2020

Janua Februa Mar Apri May June July Augu Septem Octob Novem Decem
ry ry ch l st ber er ber ber
Budgeted Sales 1550 1450 1550 1500 1550 1500 1550 1550 1500 1550 1500 1550
Unit
Selling Price per 25 25 25 25 25 25 25 25 25 25 25 25
unit
Total Budgeted 38750 36250 3875 3750 3875 3750 3875 3875 37500 38750 37500 38750
Sales 0 0 0 0 0 0

Sales Budget 2020

For the year 2020 the selling price of Per plate bhelpuri has increased by 8.7 percent and the
price has become 25 taka. Average Sales volume has decreased because of the Covid situation.
And it has gone to 50 plates per day.

Production Budget
2020
Janua Febru Mar Apri May June Jul Aug Septem Octo Novem Decem
ry ary ch l y ust ber ber ber ber
Budgeted Sales 1550 1450 155 150 155 1500 155 1550 1500 1550 1500 1550
0 0 0 0
(+) Desired Ending 290 310 300 310 300 310 310 300 310 300 310 320
Inventory
Total Need 1840 1760 185 181 185 1810 186 1850 1810 1850 1810 1870
0 0 0 0
(-) Beginning 310 290 310 300 310 300 310 310 300 310 300 310
Inventory
Required 1530 1470 154 151 154 1510 155 1540 1510 1540 1510 1560
Production 0 0 0 0

Production Budget 2020

The beginning inventory is 310 for the production Budget of 2020. I got this information from
the desired ending inventory of Production budget of 2019. The desired ending inventory is 20
percent of budgeted sales from the month February. I have also calculated the production budget
of 2021 for the month January, to complete the December month of production budget 2020.
 Direct Material
Budget 2020

Janu Febru Marc April May June July Augu Septe Octo Nove Decem
ary ary h st mber ber mber ber

Production 1530 1470 1540 1510 1540 1510 1550 1540 1510 1540 1510 1560
Material Per unit 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3
(Kg)
Production needs 459 441 462 453 462 453 465 462 453 462 453 468
(+) Desired Ending 44.1 46.2 45.3 46.2 45.3 46.5 46.2 45.3 46.2 45.3 46.8 48
Inventory
Total Needs 503. 487.2 507.3 499.2 507.3 499. 511.2 507.3 499.2 507.3 499.8 516
1 5
(-) Beginning 45.9 44.1 46.2 45.3 46.2 45.3 46.5 46.2 45.3 46.2 45.3 46.8
Inventory
Materials to be 457. 443.1 461.1 453.9 461.1 454. 464.7 461.1 453.9 461.1 454.5 469.2
purchased 2 2
Cost of the 7543 7311. 7608. 7489. 7608. 7494 7667. 7608. 7489.3 7608. 7499.2 7741.8
Materials .8 15 15 35 15 .3 55 15 5 15 5

Direct Material Budget 2020

Here the material unit has not changed it is still 300 gram of 0.3 kg. From the production budget
of January 2021, I got the required production. I calculated the desired ending inventory of
December 2020 with the help of Production needs from January 2021.

Direct Labor Budget

2020

Janua Februa Mar Apr May June July Augu Septem Octob Novem Decem
ry ry ch il st ber er ber ber

Unit of 1530 1470 1540 151 1540 1510 1550 1540 1510 1540 1510 1560
Production 0
Direct Labor Per 0.02 0.02 0.02 0.0 0.02 0.02 0.02 0.02 0.02 0.02 0.02 0.02
unit 2
Labor Hour 30.6 29.4 30.8 30. 30.8 30.2 31 30.8 30.2 30.8 30.2 31.2
Required 2
Hourly Wage rate 180 180 180 180 180 180 180 180 180 180 180 180
Total Direct 5508 5292 5544 543 5544 5436 5580 5544 5436 5544 5436 5616
labor cost 6

Direct Labor Budget 2020

The direct labor per unit is 0.02. By multiplying direct labor per unit with the Unit of production,
we got Labor hours required. This year the hourly wage rate has increased by 20 percent and it is
now 180 taka. We got total direct labor cost by multiplying Hourly wage rate and labor hour
required.

MOH Budget 2020

Janua Februa Marc April May June Jul Augu Septem Octob Novem Decem
ry ry h y st ber er ber ber

Budgeted DLH 30.6 29.4 30.8 30.2 30.8 30.2 31 30.8 30.2 30.8 30.2 31.2
Variable MOH 6 6 6 6 6 6 6 6 6 6 6 6
rate
Variable MOH 183.6 176.4 184. 181. 184. 181. 186 184.8 181.2 184.8 181.2 187.2
Cost 8 2 8 2
Fixed Cost 3850 3850 3850 3850 3850 3850 385 3850 3850 3850 3850 3850
0
Total 4033. 4026.4 4034 4031 4034 4031 403 4034. 4031.2 4034. 4031.2 4037.2
6 .8 .2 .8 .2 6 8 8

MOH Budget 2020

The variable MOH rate has increased by 20%, and it is 6 in 2020 and the Fixed MOH cost has
increased by 10% due to the Covid Situation. It is now 3850 Taka.

Selling and Administrative

Budget 2020

Janua Febru Marc April May June July Augu Septem Octo Novem Decem
ry ary h st ber ber ber ber

Budgeted Sales 1550 1450 1550 1500 1550 1500 1550 1550 1500 1550 1500 1550
Variable S and A 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4 2.4
rate
Variable 3720 3480 3720 3600 3720 3600 3720 3720 3600 3720 3600 3720
Expenses
Fixed S and A 1976. 1976. 1976. 1976. 1976. 1976. 1976. 1976. 1976.7 1976. 1976.7 1976.7
expenses 76 76 76 76 76 76 76 76 6 76 6 6
Total S and A 5696. 5456. 5696. 5576. 5696. 5576. 5696. 5696. 5576.7 5696. 5576.7 5696.7
expenses 76 76 76 76 76 76 76 76 6 76 6 6
(-) Non Cash 50 50 50 50 50 50 50 50 50 50 50 50
expenses
Cash S and A 5646. 5406. 5646. 5526. 5646. 5526. 5646. 5646. 5526.7 5646. 5526.7 5646.7
expenses 76 76 76 76 76 76 76 76 6 76 6 6
Selling and Administrative Budget 2020

The variable S and A rate are 2.4 and Fixed S and A expenses is 1976.76. In 2019 the fixed S
and A expenses were 1938 and after 2 percent increase, the amount is 1976.76 in 2020. The
variable S and A rate have also increased by 20% for the Pandemic. Depreciation is deducted
from Total S and A expenses because it is a type of Non cash expense.

Cash Budget 2020

Janua Febru Marc April May June July Augu Septe Octob Nove Decem
ry ary h st mber er mber ber

Beginning Cash 32870 34472 35893 37485 38986 40578 42079 43661 45253 46754 48346 49847
Balance 4.5 2.3 6 2.3 9 5.3 7 6.7 3.02 9.7 6 2.79
(+) Cash 38750 36250 38750 37500 38750 37500 38750 38750 37500 38750 37500 38750
Collection
Total Cash 36745 38097 39768 41235 42861 44328 45954 47536 49003 50629 52096 53722
4.5 2.3 6 2.3 9 5.3 7 6.7 3.02 9.7 6 2.79
(-) Material 7543. 7311. 7608. 7489. 7608. 7494. 7667. 7608. 7489.3 7608. 7499.2 7741.8
Cost 8 15 15 35 15 3 55 15 5 15 5
(-) Direct Labor 5508 5292 5544 5436 5544 5436 5580 5544 5436 5544 5436 5616
Cost
(-) MOH 4033. 4026. 4034. 4031. 4034. 4031. 4036 4034. 4031.2 4034. 4031.2 4037.2
6 4 8 2 8 2 8 8
(-) S and A 5646. 5406. 5646. 5526. 5646. 5526. 5646. 5646. 5526.7 5646. 5526.7 5646.7
76 76 76 76 76 76 76 76 6 76 6 6
Ending Cash 34472 35893 37485 38986 40578 42079 43661 45253 46754 48346 49847 51418
Balance 2.3 6 2.3 9 5.3 7 6.7 3 9.71 6 2.79 1.03

Cash Budget 2020

Here I have added the beginning cash balance with the budgeted sales/Cash collection of January
2020. After adding the beginning cash balance and budgeted sales/Cash collection, I deducted all
the expenses and got the ending cash Balance of January. The ending cash balance of January is
the beginning cash balance of February, and by this way we have repeated the process for this
year.