Accounting & Financial Reporting

Final Project
Master Budget Plan

Submitted by
Sajed Osama Abdelsattar Alfarra
Heba Mohamed Abdelaal
Hend Essam Gaber
Samah Saeed Ahmed

Submitted to
Dr. Mina Bishara
Sales Budget for the Second Quarter
 Pharaoh’s Company sells only one product and that product has a
selling price of 46,000 EGP Per Ton
Month March April May June Quarter July August
Budget 1,300 1,050 1,500 1,850 4,400 1,600 1,400
Sales in
Units
Selling 46,000 46,000 46,000 46,000 46,000 46,000
Price
Per
Units
Total
Budget 59,800,000 48,300,000 69,000,000 85,100,000 202,400,000 73,600,000
Sales

Production Budget for the Second Quarter

 The Management at Pharaoh’s Company wants ending inventory
to be equal to 10% of the following month’s budgeted sales in
units
Month March April May June Quarter July
Budget 1,300 1,050 1,500 1,850 4,400 1,600
Sales
Desired 105 150 185 160 160 140
Ending
Inventory
Total Needs 1,405 1,200 1,685 2,010 4,560 1,740
Beginning 130 105 150 185 105 160
Inventory
Required 1,275 1,095 1,535 1,825 4,455 1,580
Production
Cash Collections for the Second Quarter
 Collected in the month of sale 70%
 Collected in the month following sale 30%
 The March 31 Account Receivable balance of 17,940,000 EGP will
be collected in full
Month March April May June Quarter July
Accounts 17,940,000 17,940,000
Receivable for
March
April Sales
70%*48,300,00 33,810,000 33,810,000
0
30%*48,300,00 14,490,00 14,490,000
0
May Sales
70%*69,000,00 48,300,00 48,300,000
0 0
30%*69,000,00 20,700,000 20,700,000
0
June Sales
70%*85,100,00 59,570,000 59,570,000
0
30%*85,100,00 25,530,00
0 0
Total Cash 51,750,000 62,790,00 80,270,000 194,810,00
Collections 0 0
Direct Materials Budget for the Second Quarter
 Potato 530 KG/Ton Cost 5 EGP/KG
 Oil 180 Liter/Ton Cost 35 EGP/Liter
 Spice 30 KG/Ton Cost 150 EGP/KG
 Management wants material on hand at the end of each month
equal to 10% of following month’s production
Month March April May June Quarter July
Potato
Production 1,095 1,535 1,825 4,455 1,580
Materials 530 530 530 530 530
Per Unit
Kg/Ton
Production 580,350 813,550 967,250 2,361,150 837,400
Needs
Desired 81,355 96,725 83,740 83,740
Ending
Inventory
Total Needs 661,705 910,275 1,050,990 2,444,890
Beginning 58,035 81,355 96,725 58,035
inventory
Materials to 603,670 828,920 954,265 2,386,855
be
Purchased
Cost of 5 5 5 5
Material
per Kg
Cost of 3,018,350 4,144,600 4,771,325 11,934,275
Material
Purchased
Oil
Production 1,095 1,535 1,825 4,455 1,580
Materials 180 180 180 180 180
Per Unit
Liter/Ton
Production 197,100 276,300 328,500 801,900 284,400
Needs
Desired 27,630 32,850 28,440 28,440
Ending
Inventory
Total Needs 224,460 309,150 356,940 830,340
Beginning 19,710 27,630 32,850 19,710
Inventory
Materials to 204,750 281,520 324,090 810,630
be
Purchased
Cost of 35 35 35 35
Material
per Liter
Cost of 7,166,250 9,853,200 11,343,150 28,362,600
Material
Purchased
Spice
Production 1,095 1,535 1,825 4,455 1,580
Materials 30 30 30 30
Per Unit
Kg/Ton
Production 32,850 46,050 54,750 133,650 47,400
Needs
Desired 4,605 5,475 4,740 4,740
Ending
Inventory
Total Needs 37,455 51,525 59,490 138,390
Beginning 3,285 4,605 5,475 3,285
Inventory
Materials to 34,170 46,920 54,015 135,105
be
Purchased
Cost of 150 150 150 150
Material
per Kg
Cost of 5,125,500 7,038,000 8,102,250 20,265,750
Material
Purchased
Total 15,310,100 21,035,800 24,216,725

Direct Labor Budget for the Second Quarter

  At Pharaoh’s Company Each ton of production require 48 Hour of
direct labor
 Workers agree to a wage rate of 20 EGP Per Hours regardless of
the Hour worked
Month March April May June Quarter July
Units of 1,095 1,535 1,825 4,455
Production
Direct Labor 48 48 48 48
Per Unit
Labor Hours 52,560 73,680 87,600 213,840
Required
Hourly 20 20 20 20
Wage Rate
Total Direct 1,051,200 1,473,600 1,752,000 4,276,800
Labor Cost

Manufacturing Overhead Budget for the Second Quarter

 Variable Manufacturing Overhead Rate 30 EGP per Hour
 Fixed Manufacturing Overhead Cost 5,000,000 EGP per Month
 Non-Cash Cost 2,000,000 EGP per Month
Month March April May June Quarter July
Budgeted 52,560 73,680 87,600 213,840
Directed
Labor Hours
Variable 30 30 30 30
MOH Rate
Variable 1,576,800 2,210,400 2,628,000 6,415,200
MOH Cost
Fixed MOH 5,000,000 5,000,000 5,000,000 15,000,000
Cost
Total MOH 6,576,800 7,210,400 7,628,000 21,415,200
Cost
Non-cash 2,000,000 2,000,000 2,000,000 6,000,000
Cost
Cash 4,576,800 5,210,400 5,628,000 15,415,200
Disbursement
for MOH
Selling and Administrative Expense Budget for the Second
Quarter
 Variable Selling and Administrative Rate 2,000 Per Ton Sold
 Fixed Selling and Administrative expenses 3,000,000 Per Month
 Non-Cash Expenses 1,000,000 Per Month
Month March April May June Quarter July
Budget 1,050 1,500 1,850 4,400
Sales
Variable 2,000 2,000 2,000 6,000
S&A Rate
Variable 2,100,000 3,000,000 3,700,000 8,800,000
Expenses
Fixed S&A 3,000,000 3,000,000 3,000,000 9,000,000
expenses
Total S&A 5,100,000 6,000,000 6,700,000 17,800,000
Expenses
Non-cash 1,000,000 1,000,000 1,000,000 3,000,000
Expenses
Cash S&A 4,100,000 5,000,000 5,700,000 14,800,000
Expenses

Cash Budget for the Second Quarter

 Has an April 1 Cash balance of 10,000,000 EGP
 Pays a Cash Dividend of 30,000,000 EGP in June
 Purchases 20,000,000 EGP of Equipment in April and 20,000,000
EGP in May and 10,000,000 EGP in June (both Purchases
paid in cash)
Month March April May June Quarter July
Beginning 10,000,000 16,711,900 26,782,100 10,000,000
Cash Balance
Cash 51,750,000 62,790,000 80,270,000
Collection 194,810,00
Total Cash 61,750,000 79,501,900 0
Available 107,052,10 248,304,00
Cash 0 0
Disbursement
Materials 15,310,100 21,035,800 24,216,725 60,562,625
Direct Labor 1,051,200 1,473,600 1,752,000 4,276,800
Manufacturing 4,576,800 5,210,400 5,628,000 15,415,200
Overhead
Selling and 4,100,000 5,000,000 5,700,000 14,800,000
Administrative
Equipment 20,000,000 20,000,000 10,000,000 50,000,000
Purchase
Dividend 30,000,000 30,000,000
Total 45,038,100 52,719,800 77,296,725
Disbursement 175,054,625
Excess
(Deficiency)
Financing:
Borrowing 0 0 0 0
Repayment 0 0 0 0
Interest 0 0 0 0
Total 0 0 0 0
Financing
Ending Cash 16,711,900 26,782,100 29,755,375 73,249,375
Balance

Budgeted Income Statement

Sales 202,400,000
Cost of goods sold (59,198,876)
Gross margin 143,201,124
Total Selling and Administrative Expenses (17,800,000)
Operating income 125,401,124
Budgeted Balance Sheet
Pharaoh’s Company reported the following Account balances prior to
preparing its budgeted financial statements
 Land 8,000,000
 Equipment 5,000,000
 Common Stock 30,000,000
 Retained Earnings 28,547,675
Current Assets
Cash 73,249,375
Accounts Receivable 25,530,000
Raw Materials Inventory 2,125,100
Finished Goods Inventory 2,152,686.4
Total Current Assets 103,057,161
Property and Equipment
Land 8,000,000
Equipment 55,000,000
Total Property and Equipment 63,000,000
Total Assets 166,057,161
Account Payable 12,108,362
Common Stock 30,000,000
Retained Earnings 123,948,799
Total Liabilities and Equities 166,057,161

Beginning Balance 28,547,675

Operating income 125,401,124
Cash dividend (30,000,000)
Ending balance 123,948,799