PROJECT

Of

“COST OPERATIONS AND MANAGEMENT”

SUBMITTED BY
Hibba Adeel B-
24103
Abdul Karim B-
24087
Yashfa Waseem B-
24002
Maryam Mubashar B-
24156
Muhammad Bilal B-
Zeeshan Hussain 24236
B-
24026

SUBMITTED TO

SIR ABID MEHMOOD RANA

JANUARY – 13 – 2022
 UNIVERSITY OF SOUTH ASIA
DEPARTMENT OF MANAGEMENT SCIENCE

QUESTION - 2
Quarterly sales budget by districts; Inventory schedule. Estimated sales
percentages for the first three months period of the coming year of the
Yum Pum Company are:

DISTRICTS September October November TOTAL

Karachi 40% 30% 30% 100%

Lahore 60% 25% 15% 100%

Islamabad 55% 25% 20% 100%

Peshawar 70% 25% 5% 100%

Estimated unit sales (at 2 per unit) by district for the three months are

DISTRICT UNIT SALES

Karachi 25,000

Lahore 30,000

Islamabad 15,000

Peshawar 30,000

TOTAL 100,000

Company policy expects an inventory of 20,000 units at the beginning

& at the end of each three months period the production schedule is

October 45%

November 35%

December 20%

REQUIRED:

1- An estimate of sales by units and dollars for each of the

three months for each districts and in total

2- A schedule of the end of month inventories by units

DISTRICTS September October

Unit Amount Unit Amount

Karachi 10,000 20,000 7,500 15,000

Lahore 18,000 36,000 7,500 15,000

Islamabad 8,250 16,500 3,750 7,500

Peshawar 21,000 42,000 7,500 15,000

57,250 10, 4500 26,250 52,500

November TOTAL

Unit Amount Unit Amount

7,500 15,000 25,000 50,000

4,500 9,000 30,000 60,000

3000 6,000 15,000 30,000

1,500 3,000 30,000 60,000

57,250 3,3000 100,000 200,000

 SCHEDULE OF INVENTORY

Opening unit in September 20,000

Add: unit purchased in September 45,000

Available for sale 65,000

Less: unit sold in September (57250)

Units in ending of September 7750

Add: units purchased in October 35,000

Available for sale 42750

Less: unit sold in October (26250)

Unit in ending of October 16500

Add: unit purchased in November 20,000

Available for sale 36,500

Less: unit sold in November (16,500)

Unit in ending of November 20,000