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producto estrella
Productos: cupcakes pasteles ind cake jars

Data: (in pesos)

DeliDeli Manufacturing Inc. produces cake jars and we are preparing budgets for the last quarter of the year 2021.
Sales policy is 60% cash and 40% on account, which is collected the month following the sale.
Uncollectible represent 5%. The sales price is $120 pesos per cake jar.

Estimated units to be sold:

October 1220
November 1305
December 1444

The company has a beginning-work in process in October for $1,217, and expects to complete 95% of production by
Labor and materials requirements per unit are:
Material:
For the production of cake jars, DeliDeli uses the next components: cake ($18.43 per 8 portions, $2.30 per unit, butter
Labor:
Baking labor 0.5hour, $40 per hour
Decorating labor 0.5 hour, $30 per hour

Management wants each month's materials beginning inventory to represent 20% of that month's production.
Materials are paid 50% in cash and 50% on account, which is paid the month after the purchase.
Management requires that each month´s beginning inventory in units be 40% of that month´s sales.
The beginning balance of cash in October is $60,000.
Indirect material costs are estimated as follows:
October $650
November $770
December $960
The cost of indirect labor required is $900 each month.

Other monthly overhead costs are estimated as follows:

Electricity $20,000
Maintenance $10,000
Utilities and property taxes $750
Rent $25,000
Depreciation expense $230
The general expenses per quarter consist of salaries of administrative personnel for $4,500 and for sales personnel $7
Additional information:
A bank loan for $50,000 will be obtained in October. It was used to buy material and instruments.
Payments will be $5,000 each month plus an interest of $350.
The company is going to invest in new equipment for $20,000 in November
Income taxes 30%
Finished goods inventory, October 1st is 350
Finished goods inventory, December 31st is 600  
         
         
DeliDeli Company
Sales Budget 2021

      October November
 
Sales in units 1220 1305
Unit sales price $125 $125 $125
Sales Revenue $152,500 $163,125
 
         

DeliDeli Company
Cash Receipts Budget 2021
 
      October November
 
Collections in quarter of sale 60% $91,500 $97,875
Collections in quarter following sale 35% $63,175 $53,375
Total cash receipts $154,675 $151,250
         

DeliDeli Company
Production Budget 2021
 
      October November
 
Sales in units 1220 1305
Add: Desired ending inventory
of finished goods 522 577.6
Total units required 1742 1882.6
Less: Expected beginning inventory
of finished goods 40% 488 522
Units to be produced 1254 1360.6
         

DeliDeli Company
Direct Material Budget 2021
 
      October November
 
Material: __cake__
Units to be produced 1254 1360.6
Raw material required per unit 1 1 1
Raw material required for production 1254 1360.6
 
Add: Desired ending inventory of
raw material 272.12 270.88
Total raw material required 1526.12 1631.48
 
Less: Expected beginning inventory
of raw material 20% 250.8 272.12
Raw material to be purchased 1275.32 1359.36
 
Cost per unit of material $ 2.30 $ 2.30 $ 2.30
 
Total cost of cake flour purchases $2,933 $3,127
 
 
Material: __buttercream__
Units to be produced 1254 1360.6
Raw material required per unit 1 portion 1 1
Units of material to be purchased 1254 1360.6
 
Cost per unit of material $ 3.54 $ 3.54 $ 3.54
 
Total cost of portions of buttercream purchases $ 4,439 $ 4,817
 
 
Material: __jar__
Units to be produced 1254 1360.6
Raw material required per unit 1 1 1
Units of material to be purchased 1254 1360.6
 
Cost per unit of material $ 35.70 $ 35.70 $ 35.70
 
Total cost of jars purchases $ 44,768 $ 48,573
 
 
Total cost of raw material purchases $ 52,140.20 $ 56,516.47

DeliDeli Company
Direct Labor Budget 2021
 
      October November
 
Units to be produced 1254 1360.6
Baking labor required per unit (hours) 0.5 0.5 0.5
Total direct labor hours required 627 680.3
 
Direct labor cost per hour $40 $40 $40
 
Total Baking labor cost $25,080 $27,212
 
Units to be produced 1254 1360.6
Decorating labor required per unit (hours) 0.5 0.5 0.5
Total direct labor hours required 627 680.3
 
Direct labor cost per hour 30 30 30
 
Total Decorating labor cost $18,810 $20,409
 
Total direct labor cost $43,890 $47,621
 
         

DeliDeli Company
Manufacturing Overhead Budget 2021
 
      October November
 
Indirect material $ 650.00 $ 770.00
Indirect labor $ 900.00 $ 900.00
Electricity and utilities 20,000 $ 20,000.00 $ 20,000.00
Maintenance 10,000 $ 10,000.00 $ 10,000.00
Rent 25,000 $ 25,000.00 $ 25,000.00
Depreciation 230 $ 230.00 $ 230.00
Total manufacturing overhead $ 56,780.00 $ 56,900.00
 
Less: Depreciation 230 $ 230.00 $ 230.00
Total cash disbursements for overhead $ 56,550.00 $ 56,670.00
         

DeliDeli Company
Selling, General and Administrative Expenses Budget 2021
 
      October November
 
Administrative salaries 4,500 4,500 4,500
Other administrative expenses 2,000 2,000 2,000
Sales personnel salaries 7,000 7,000 7,000
Advertising 10,000 10,000 10,000

Total of General Expenses 23,500 23,500

         

DeliDeli Company
Cash disbursements Budget 2021
 
      October November
 
Cash payments for purchases made 50% $26,070.1 $28,258.2
during the quarter
Cash payments for prior month's 28,108 $26,070
purchases 50%    
Total cash payments for raw material $54,177.9 $54,328.3
purchases
 
Other cash disbursements:
Direct labor $43,890 $47,621
Total cash disbursements for overhead $56,550 $56,670
Administrative salaries 4,500 4,500
Other administrative expenses 2,000 2,000
Sales personnel salaries 7,000 7,000
Advertising 10,000 10,000
Total of other cash disbursements $123,940 $127,791
 
Total cash disbursements $178,118 $182,119
 
 
         

DeliDeli Company
Cash Budget 2021
 
      October November
 
Cash receipts $154,675 $151,250
Less: Cash disbursements $178,118 $182,119
Change in cash balance due to operations -$23,443 -$30,869
Proceeds from bank loan 50,000 0
Payments of principal of bank loan 0 5000
Interest on bank loan 0 350
Payments for investments in assets 0 20,000
Change in cash balance during the quarter
Cash balance 01/10/2021 60,000
Cash balance 31/12/2021
 
         
 rter of the year 2021.

e 95% of production by the end of December.

ons, $2.30 per unit, buttercream ($70.76 for 20 portions, $3.54 per portion) and a jar ($35.70 per unit)

nth's production.

nd for sales personnel $7,000. Advertising $10,000, and other administrative expenses $2000.
             
             
             
  DeliDeli Company
  Budgeted Schedule of Cost of Goods Manufactured
For the period October-December 2021
 

December Quarter    
  Direct Material    
1444 3969   Raw Material Inventory, October 1st  
$125 $125   Add: Purchases of raw material  
$180,500 $496,125   Raw material available for use  
  Deduct: Raw Material Inventory, December 31st
      Direct material used    
  Direct Labo     
  Manufacturing Overhe    
  Total manufacturing costs  
  Add: Work-in-process inventory, October 1st.
  Subtotal      
  Deduct: Work-in-process inventory, December 31st
December Quarter   Cost of goods manufactured  
         
$108,300 $297,675   Add: Finished goods inventory, October 1st
$57,094 $173,644   Cost of goods available for sale  
$165,394 $471,319   Deduct: Finished goods inventory, December 31st
      Cost of goods sold    
         
         
         
         
         
         
December Quarter          
         
1444 3969          
         
488 488          
 1932 4457          
         
577.6 488          
1354.4 3969          
             
         
         
         
         
         
         
December Quarter          
         
         
1354.4 3969          
1 1         
1354.4 3969          
         
         
250.8 250.8          
1605.2 4219.8          
         
         
270.88 250.8          
1334.32 3969          
         
$ 2.30 $ 2.30          
         
$3,069 $9,129          
         
         
         
1354.4 3969          
1 1         
1354.4 3969          
         
$ 3.54 $ 3.54          
         
$ 4,795 $ 14,050          
         
         
         
1354.4 3969          
1 1         
1354.4 3969          
          
$ 35.70 $ 35.70          
         
$ 48,352 $ 141,693          
         
         
$ 56,215.59 $ 164,872.26          
         
         
         
         
         
         
         
         
         
         
December Quarter          
         
1354.4 3969          
0.5 0.5          
677.2 1984.5          
         
$40 $40          
         
$27,088 $79,380          
         
1354.4 3969          
0.5 0.5          
677.2 1984.5          
         
30 30          
         
$20,316 $59,535          
         
$47,404 $138,915          

   

 
         
 December Quarter          
         
$ 960.00 $ 2,380.00          
$ 900.00 $ 2,700.00          
$ 20,000.00 $ 20,000.00          
$ 10,000.00 $ 30,000.00          
$ 25,000.00 $ 25,000.00          
$ 230.00 $ 690.00          
$ 57,090.00 $ 80,770.00          
         
$ 230.00 $ 690.00          
$ 56,860.00 $ 80,080.00        
             
         
         
         
         
t 2021          
         
December Quarter          
         
4,500 13,500          
2,000 6,000          
7,000 21,000          
10,000 30,000          
         
   
23,500 70,500          
             
         
         
         
         
         
         
December Quarter          
         
$28,107.8 $82,436.1          
         
$28,258 $82,436          
             
$56,366.0 $164,872.3          
         
         
         
 $47,404 $138,915          
$56,860 $170,080          
4,500 13,500          
2,000 6,000          
7,000 21,000          
10,000 30,000          
$127,764 $379,495          
         
$184,130 $544,367          
         
         
             
         
         
         
         
         
         
December Quarter          
         
$165,394 $471,319          
$184,130 $544,367
-$18,736 -$73,049
0 50,000
5000 10000
350 700
0 20,000
-$53,749
60,000
$6,251

   
            
           
           
eliDeli Company    
Cost of Goods Manufactured and Sold    
ember 2021
   

     
           
    577     Sales Revenue
    164,872     Cost of goods sold
    165,449     Gross margin
  577     Other expenses
    164,872     Selling, general and administrative expenses
    138,915     Uncollectible acounts expense
    80,770     Interest expense
    384,557     Total other expenses
    1,217     Income before taxes
    385,774     Income taxes
5% 19,289     Net Income
    366,486      
         
    350      
    366,836      
  600      
    $366,236      
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           

           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
          
         
         
         
DeliDeli Company

Budgeted Income Statement

For the period October-December 2021

$496,125
$366,236  
$129,889

ve expenses 70,500
5% $24,806  
700
96,006
$33,883
30% $10,165
$44,048

Manager´s signature Accountant´s signature

         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
   
   
   
   
   
   
   
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
         
Sales Mix BEP for DeliDeli Manufacturing Inc.
cake jars 40% Cake Jars Pasteles Ind
pasteles ind 25% Sales Price $ 125.00 $ 90.00
cupcakes 35% Variables Cost $ 100.00 $ 50.00
UCM $ 25.00 $ 40.00
Fixed Cost per month $ 100,000.00 PPMC $ 10.00 $ 10.00

BEP In Units for DeliDeli Manufacturing Inc. =

BEP In Units for DeliDeli Manufacturing Inc. =

BEP In Units for DeliDeli Manufacturing Inc. =

Income Statement
Cake Jars Pasteles Ind
Sales Revenue $198,020 $ 89,109.00
Total Variable Cost $158,416 $ 49,505.00
Contribution Margin $39,604 $ 39,604.00
Fixed Cost
Profit Loss
Manufacturing Inc. BEP for DeliDeli Manufacturing Inc.
Cupcakes Total Cake Jars Pasteles Ind Cupcakes
$ 25.00 $ 240.00 BEP In Units 3960.4 3960.4 3960.4
$ 10.00 $ 160.00 Sales Mix 40% 25% 35%
$ 15.00 $ 80.00 Total 1584.16 990.1 1386.14
$ 5.25 $ 25.25

Fixed Cost BEP of the Star Product = Fixed Cost

PPMC Cake Jars Sales Price - Variable Cost

100,000 BEP of the Star Product = 100,000

25.25 Cake Jars 125 -

3960.39604 Units BEP of the Star Product =

4,000
Cake Jars
tatement
Cupcakes Total
$ 34,653.50 $321,783
$ 13,861.40 $221,782 BEP in sales of the Star Product = Fixed Costs
$ 20,792.10 $ 100,000.10 Cake Jars CM%
$ 100,000.00
$ 0.10 BEP in sales of the Star Product = 100,000
Cake Jars 0.2

BEP in sales of the Star Product =

500,000
Cake Jars

CM% = MC / income
CM%= 25 / 125
CM% = 0.2
 ixed Cost
ce - Variable Cost

100,000
100
DeliDeli Manufacturing Inc. sells 3 products and wants to know how many units they should be sold to have no

The fixed cost per month is $100,000

Sales Mix
cake jars 40%
pasteles ind 25%
cupcakes 35%

PRODUCTS MIX UNIT PRICE UNIT VARIABLE COST

cake jars 40% $125.00 $ 100.00
pasteles ind 25% $90.00 $ 50.00
cupcakes 35% $25.00 $ 10.00
total 100%
hey should be sold to have no profit or loss. They have the following information:

BREAK EVEN POINT (units)

FC $100,000.00 = $3,960.40
PPMC $25.25

COMPROBACIÓN
Cont. Margin PPMC Q. BEP
$25.00 $10.00 $1,584.16 $39,604
$40.00 $10.00 $990.10 $39,604
$15.00 $5.25 $1,386.14 $20,792.1
$25.25 $3,960.40 $100,000.10 $100,000.00
 ABC SYSTEM Total MOH =

ABC SYSTEM
Cake jars Cupcakes Individual Cakes
Sales $675,000 $ 90,000.00 $283,500.00
Product costs
Raw material 31.54 5 25.7
Direct labor 32 3 20
MOH per unit $ 17.58 $ 13.50 $ 31.46
Total product cost 81.1212143878083 21.5006454389 77.1630006317441

130% Sales price 105.457578704151 27.9508390706 100.311900821267

(QUARTER)
Activity Cost driver Cost Budgeted activity
Machine related cost (freezer) Hours of usage $ 80,000.00 $ 60,000.00
Mixing Mixing hours $ 15,000.00 10,000
Decorating Decorating hours $ 20,000.00 20,000
920 Baking Baking hours $ 35,000.00 20,000
Space usage (rent) Space (m2) $ 40,000.00 $ 30,000.00
70% Quality control Batches $ 70,000.00 7000
 260,000

Traditional system
Cake jars Cupcakes Individual Cakes
Units produced 3600.00 4500.00 2700.00
Raw Material 25.84 2.78 10.5
Direct labor 65 20 42
Manufacturing overhead 28 5 24
Total product cost 118.84 27.78 76.5

Sales price 154.492 36.114 99.45

Cake jars
Level Cost pool rate Requirments
288 $ 277.78
222.91 $ 67.29 66.666666666667
196.875 $ 101.59 83.333333333333
577.5 $ 60.61 50
1000 $ 40.00 700
725 $ 96.55 200
TOTAL MOH

Unit MOH
 cake jars cupcakes cakes
units per batch 18 24 9

Cake jars cupcakes individual cakes

Cost Requirments Cost Requirments

$ 4,486.12 62.5 $ 4,205.73 100

$ 8,465.61 46.875 $ 4,761.90 75
$ 3,030.30 93.75 $ 5,681.82 225
$ 28,000.00 700 $ 28,000.00 700
$ 19,310.34 187.5 $ 18,103.45 300
$ 63,292.37 TOTAL MOH $ 60,752.90 TOTAL MOH

$ 17.58 Unit MOH $ 13.50 Unit MOH

individual cakes
Cost

$ 6,729.17
$ 7,619.05
$ 13,636.36
$ 28,000.00
$ 28,965.52
$ 84,950.10

$ 31.46