Just Bags For U

A Requirement for the Entrepreneurship

Presented to the Marcelo H. Del Pilar Nation High School
Senior High School

In Partial Fulfilment of
The Requirements of the Strand of
Humanities and Social Sciences

David, Bea Prancine D.L.

Esguerra, Francine C.
Javier, Crischelle Anne C.
Victoria, Noelle Angela P.

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 TABLE OF CONTENTS

CHAPTER PAGE
Title Page ……………………………………………………………………………..1

Table of Contents ………………………………………………………………........2

CHAPTER 1: MANAGEMENT ASPECT …......................................4

Vision, Mission, Goals and Objectives …………………………………….....5

Business Name and Logo ..........................................................................6

Business Description ..................................................................................7

SWOT Analysis ..........................................................................................9

Organizational Structure............................................................................10

Job Analysis ..............................................................................................11

Business Policies ......................................................................................15

CHAPTER 2: MARKETING ASPECT ............................................16

Product Picture and Product Description …………………………………….17

Target Market Description ..........................................................................18

Pricing Strategy ..........................................................................................20

Distribution Strategy ...................................................................................21

Survey Result | Tabulation | Graph .............................................................22

Promotional Strategies ................................................................................25

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CHAPTER 3: TECHNICAL AND LEGAL ASPECT ........................28

Production Flowchart ..................................................................................29

Product Process …………………………………………………………………30

Production Schedule …………………………………………………………….30

Production Capacity ……………………………………………………………..31

Manpower Schedule …………………………………………………………….31

Procurement Schedule ………………………………………………………….32

Legal Aspect ……………………………………………………………………...32

CHAPTER 4: FINANCIAL ASPECT.................................................42

Sales Budget ……………………………………………………………………..43

Production Budget ……………………………………………………………....43

Direct Materials Budget …………………………………………………………43

Costing of Materials ……………………………………………………………..44

Direct Labor Budget……………………………………………………………...45

Manufacturing Overhead Budget ………………………………………………45

Statement of Good Manufactured…………….………………………………..46

Income Statement ……………………………………………………………….46

Return on Investment…………………………………………………………….47

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 CHAPTER 1:
MANAGEMENT
ASPECT
Management is a set of principles relating to the functions of planning,

organizing, directing and controlling, and the application of these principles in

harnessing physical, financial, human and informational resources efficiently and

effectively to achieve organizational goals. This chapter consists of the vision and

mission of the business, as well as its goals and objectives. It also shows the

business logo and features the product offered. In addition, description about the

business format, business location and location of production is included. The key

roles of the employees are described and illustrated in organizational chart. At the

end of the chapter business policies are stated involving the work ethical guidelines

in the operation of the business.

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VISION
To protect the environment from plastic pollution. We want "Just Bags

For U" to be a part of living that promotes sustainability and offers environmentally

friendly crafts; we also aim to become internationally well-known and carry our

goods to the industry’s height.

MISSION

To provide environmentally friendly bags to reduce the usage of single-

use shopping bags around the world. We strive to satisfy our customers' needs by

providing them with high-quality, flexible, and inexpensive items, as well as by

discussing the best ways to minimize pollution and protect the environment.

GOALS

 To become famous in industry and be internationally well-known

 To expand the use of reusable carryalls.

 To raise the awareness on environmental problems

OBJECTIVES

 To provide complete transparency to our clients.

 We are responsible for our actions, providing the quality and service.

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  We strive every day to sustain our planet.

BUSINESS LOGO

Figure 1: Business Logo

BUSINESS NAME
Just Bags For U
Just Bags For U is a custom tote bags made of organic cotton and made for

your style. Our tote bags are reliable, convenient, and reusable alternative to

plastic. A tote bag, in essence, is any bag of variable size that often lacks fasteners

other than a pair of parallel handles on either side to hold the bag by. The meaning

behind our product name “Just Bags For U” represents the core essence of our

6 | JUST BAGS FOR U

business. We offers different designs that applicable to all ages. It comes with

different Minimalist designs.

BUSINESS DESCRIPTION
Just Bags For U is a newly established fashion business providing

fashionable trendy bags, specifically eco-friendly tote bags. It comes with different

Minimalist designs such as inspirational words (baybayin) totes. As the brand

name suggests, we are trying to promote an eco-friendly relevant trend for

everyone who wants to satisfy fashion sense. New designs and themes will set it

apart from its competitors in the market.

Unfortunately, in this time of pandemic, the entrepreneurs will ensure the

safety of the customers by properly sanitizing the tools and equipment method for

the production. Entrepreneurs will also follow hygienic preparations including PPE,

and will implement the minimum health protocols. It is an affordable bag for

anyone, especially to the students (specifically Gen Z) who wish to buy fashionable

bags in a great deal considering other’s financial ability in the economic breakdown

crisis due to the COVID-19 pandemic. The entrepreneurs aim to ease their

emotional stability, bring contentment and feel confident as they dress up to go out

and hang-out.

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BUSINESS FORMAT

"Just Bags for U" is established as a sole proprietorship. This company

endeavor is owned and controlled by a single organization, and it is extremely

simple, straightforward, and convenient to set up. It is also considered as the

cheapest form of business organization, as there are few prerequisites for

establishing and rules inside the proprietorship. The proprietor has complete

control over the business and has complete flexibility.

BUSINESS LOCATION
With the ongoing pandemic and quarantine protocols, the physical

contact with the buyers are limited. The people are hesitant on going out and shop

as the risk is still high, but, to run our business, we will be using the different social

media platforms as our instrument to market our products.

PRODUCT LOCATION

058 Enriquez Street Caingin, City of

Malolos Bulacan

Figure 2. Map of the Business Location

TOTAL INVESTED AMOUNT

Php 1, 400.00

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SWOT ANALYSIS
Strength

 In attaining the eco-friendly totes, we will use eco-friendly materials.

 Affordable price of a product

 Have a high quality packaging

 Best customer service

 Products will follow safe procedures

 Delivers the product to the customer

Weakness

 In comparison to rivals, the product offers one theme only.

 Limited and local distribution

 Unstable profitability

 No reputation

Opportunities

 Growing consumer interest in locally-sourced bags

 Upcoming bazaars in town

 Potential growth with online shopping apps

 Potential partnership with local artists

Threats

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  Increase of material’s price

 The product can be easily dirty

 Location

 Negative customer reviews

ORGANIZATIONAL STRUCTURE

Figure 3. Organizational Structure

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JOB ANALYSIS
Employees are an essential part of every business as they help the

business to flourish and grow. They are crucial for the business’s success, much

like a customer. Moreover, hiring employees that are dependable and have good

characteristics drives customer satisfaction.

Job Title: Owner/Manager

Owner’s Name: Francine C. Esguerra
Job Description:

 An owner operator acts as the chief stakeholder of a business

operation.
 Hires employee
 Looks for promising circumstances and recognizes dangers for the
business
 Leads and provides guidance for the group
 Guarantees predominant and steady nature of items and administration
 Constructs and improves significant relationship with the clients and the
staff

Job Qualification:

 Leadership ability
 Ability and authority to bring people together to make timely and binding
decisions.
 Organizational authority to commit resources when needed.
 Knowledge about business management
 Creative, critical-thinking, and analytic ability
 Multitasking and productivity skills

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  Opportunity-seeker and competent decision-maker

Benefits and Compensation:

Net Profit

Job Title: Production Officer

Employee Name: Crischelle Anne C. Javier
Job Description:

 Finalizing and packaging products for shipment.

 Plans and organizes schedules of production
 Working on the production line and meeting production targets
 Operating and maintain machinery and production line equipment
 Maintains workplace hygiene and cleanliness, as well as ensuring that
safety regulations are followed.
 Mainly responsible for the production

Job Qualifications:

 Understanding of quality standards and health and safety regulations

 Knowledge of performance evaluation and budgeting concepts.
 Ability to detect equipment malfunctions
 Consistency, attentiveness, and resourcefulness
 Efficient time management
 Organizing skills that work
 Multitasking abilities

Benefits and Compensation:

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 Salary

Job’s Title: Advertising Crew

Employee Name: Bea Prancine D.L David
Job Description:

 Leading brainstorming sessions with team members to cultivate ideas

for new advertising campaign concepts, including content and design
elements.
 Creative, critical thinking, and analytic ability
 Adjust job duties and requirements based on the needs of your
Marketing department.
 Developing strategies and tactics to boost the company’s reputation and
drive qualified traffic
 Deploying successful marketing campaigns from ideation to execution

Job Qualifications:

 Analytical skills
 Creativity
 Decision-making skills
 Organizational skills
 Communication skills
 Efficient time management

Benefits and Compensation:

Salary

Job’s Title: Production Crew

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Employee Name: Noelle Angela P. Victoria
Job Description:

 Assist the production officer for finalizing and packaging shipments

 Ascertain that the deadlines are reached.
 Ensure that the workstation is kept clean and sanitary.
 Ensure that all health and safety regulations are followed.
 Maintain and monitor supplies and equipment condition.

Job Qualifications:

 Ability to detect equipment malfunctions

 Consistency, attentiveness, and resourcefulness
 Time management that is effective
 Knowledge of safety standards and requirements
 Organizing abilities that work
 Multitasking skills

Benefits and Compensation:

Salary

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BUSINESS POLICIES

In order to create a "sought-after" and "more salable" firm, the owner,

in consultation with the employees, has discussed these policies, which will benefit

the team in being more efficient and punctual at work, as well as providing a radiant

and untroubled workplace for everybody. The owner and employees enacted and

authorized this policy, therefore it should be obeyed to yield such rights and

directives in the event of unanticipated conflicts.

Employees and the owner shall:

 Provide the needs in exact time. Since business is more on teamwork, one

should be responsible in his or her work as part of this business.

 Be assertive every time. The business would be advertised, and sold online,

making it more accessible to the public, but more penetrable to cyber trolls,

making superfluous comments on the product that the team are selling. In

this such situation, the employees should be more professional, and be

assertive as possible in solving things.

 Respect all of your coworkers. Treat your coworker with respect

professionally. Respect can help everyone develop a good relationship that

will make things easier and better.

 Maintain the product's quality high. Give all your effort to ensure that we can

give clients with high-quality products.

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 CHAPTER 2:
MARKETING
ASPECT
Marketing is defined as the activity, set of institutions, and processes for

creating, communicating, delivering and exchanging offerings that have value for

customers, clients, partners, and society at large. As stated, this aspect of the

business plan revolves around the process of understanding the customers’ needs

and wants. It includes the description of the product and its target market. The

distribution strategy as to how the products are delivered to the customers, and

the pricing strategy to formulate the selling price with consideration to the target

market and consumers are also stated. Furthermore, this aspect involves the

promotional strategies which involve the illustration of advertisements and other

platforms used to promote the product, in order to stand out among the

competitors.

Marketing aspect explains the different marketing strategies to be utilized

in order to gain the consumers’ attention and satisfy their needs and wants.

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PRODUCT PICTURE

Figure 4. Product Picture

PRODUCT DESCRIPTION
Just Bags For U is a eco-friendly, fashionable tote bag with various designs that

you can choose. Our eco-friendly tote bags are perfect for groceries, travel, beach,

school & more. Our tote bags is an open handbag that you can use especially for

carrying books, packages and small items, and you can recycled it into a variety

of interesting and useful products.

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Our bags are made of 100% natural material and can be customized with your

favorite pictures and text for the perfect gift or casual accessory. Versatile, trendy,

and durable, this custom tote means you’ll always look fashionable.

Moreover, our bag is cleverly packed in eco-friendly package that you can you

recycle and safe for the environment.

EXPLANATION OF THE PRODUCT LOGO

“Just Bags For U”. The entrepreneurs came up with the product logo, the logo

is showcasing the minimalist designs which our business is offering. The business

logo is also connected to the adorable, stylish, and simple vibe. It was decided in

this manner so that the aesthetics would appeal to not just all customers, but also

those who would visit the company's social media profiles.

MARKET DESCRIPTION | TARGET MARKET / BUYER’S

PERSONA
VARIABLES

Age  Generation Z and Young Adults (6-40 years old)

Location  058 Enriquez Street Caingin, City of Malolos, Bulacan

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Profession  No particular profession

Allowance/Salary  At least Php 150.00 reserved allowance or salary for

fashion items

Source of  Survey forms answered to distinguish the customers’

Information perception of the product

 Using different Social Media Platforms

Personality  Neutral

Buying Habit  No particular buying habit

Preferences  Those who have fashion sense

 Those who cars for environment

Family Size  No particular family size

Table 1. Demographic Profile of Target Market

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SRP (SUGGESTED RETAIL PRICE) COMPUTATION AND
PRICING STRATEGY

Php 4,000 ÷ 50 units = Php 80

÷ ÷
Figure 5. Table for computing the cost

Figure 5 shows the computation the unit cost of Just Bags For U. The annual

amount of cost of goods sold is Php 4,000 divided by 50 which is the total number

of units to be produced, having a quotient of Php 80 as the unit cost of the product.

It is the cost incurred by the business to produce and sell one unit of the product.

Php 80 × Mark on 48% (1.48) = Php 118.4

÷ ÷
Figure 6. Table for cost-based pricing unit

Figure 6 shows the calculation for the selling price per unit. The unit cost (Php

80) was determined by dividing the annual cost of goods sold to the annual number

of units produced. It is then multiplied to the mark on percentage increase (48%),

resulting to the selling price of Php 118.4 or 120 per unit.

20 | J U S T B A G S F O R U
 The figure above explains the computation on how the company came up with

the selling price. The business considered using cost based since it is the most

appropriate to use and the mark on percentage is formulated based on the

profitability of the company in order to gain profit, and competitors are considered

as well.

Cost = Php 80.00

Target Mark-on = 25%

= Php 80.00 x 0.48

= Php 38.4

Suggested Prices:

Php 80.00 + Php 38.4 = Php 118.4 or Php 120.00

DISTRIBUTION STRATEGY
From the tote manufacturer, Just Bags For U Company, will bring the

bags to the designing area. After that Just bags For U will be using direct

distribution strategy wherein the product will be distributed straight to the costumer

to satisfy their expected qualities. This also helps the company to connect to the

expected insights of the customers.

21 | J U S T B A G S F O R U
 Manufacturer

Patatakan

Customer

Figure 7. Flow of Distribution Channel

SURVEY RESULT | TABULATION | GRAPH

A survey was conducted to 70 respondents which we obtained through

social media platforms consisting of students and adults. The survey was

conducted through Google forms and sent to different respondents through the

use of messenger. This survey helped us to know their insights about the product.

A sample design was presented in the survey. The survey form has consisted of

six questions or indicators stated below:

SURVEY RESULTS
1. AGE
No. of Respondents Percentage
15 below 4 6.7%
16 to 20 years old 53 88.3%

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 21 above 3 5%
TOTAL 60 100%
2. WHAT IS YOUR FIRST REACTION TO OUR PRODUCT?
No. of Respondents Percentage
Very Positive 37 61.7%
Positive 19 31.7%
Neutral 4 6.7%
Somewhat Negative 0 0
TOTAL 60 100%
3. ARE YOU WILLING TO BUY OUR PRODUCT?
No. of Respondents Percentage
YES 50 83.3%
NO 1 1.7%
MAYBE 9 15%
TOTAL 60 100%
4. IF YES, HOW MANY TOTE BAGS WILL YOU BUY?
No. of Respondents Percentage
1-2 55 91.7%
3-5 4 6.7%
6 and Up 1 1.7%
TOTAL 60 100%
5. HOW MUCH ARE YOU WILLING TO PAY?
No. of Respondents Percentage
₱149 40 66.7%
₱159 15 25%
₱169 3 5%
(Others-₱120) 2 3.4%
TOTAL 60 100.1%
6. WOULD YOU RECOMMEND THIS PRODUCT TO YOUR
FRIENDS?
No. of Respondents Percentage
YES 60 100%
NO 0 0
TOTAL 60 0
Table 2. Survey Results Tabulation

23 | J U S T B A G S F O R U
1. Age 2. What is your first reaction
with our product?

3. Are you willing to

4. If yes, how many tote
buy our product?
bags would you buy?

24 | J U S T B A G S F O R U
 5. How much are you 6. Would you recommend this
willing to pay? product to your friends?

PROMOTIONAL STRATEGIES
We are not allowed to go out with our friends, go to the mall, or go on

a shopping spree during this pandemic. We're all cooped up in our homes, doing

everything we can to escape the boredom that has been bothering us for quite

some time. "Just Bags For U" understands how difficult it is to be a part of this

pandemic, which is why we are going online. To deal with this problem and put

advertisements on the internet, we employ these two social media sites.

Social media platforms will be used in promoting the product including:

 Facebook Page - This biggest social media platform is no exemption. We

use the popularity of this platform to promote our great business. Since

over 75 million of people here in Philippines uses Facebook, that is 68% of

25 | J U S T B A G S F O R U
 our current population in the country, we have come up to the idea that we

shall use this platform to be more reachable for our costumer.

 Instagram Account - This sixth placer of 'most popular social media

platform of 2020" by statista.com cannot be excluded on our advertising.

This app with more than 1 billion users worldwide will be surely great

platform to promote our new product. And with its not so complex buttons

and policies, we can reach pretty much everyone using this platform.

Figure 8. Just Bags For U Official Facebook

Pagehttps://www.facebook.com/JustBagsForU

26 | J U S T B A G S F O R U
 Figure 9. Just Bags For U Official Instagram Account
https://www.instagram.com/justbagsforu/

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 CHAPTER 3:
TECHNICAL
AND LEGAL
ASPECT
This chapter contains the technical aspect of the business plan. It consists

of the detailed procedures in making the product as well as all of the ingredients

needed. The step-by-step process is explained in the Production Process, and in

the Production Schedule which also includes the alloted time for every procedure.

On the other hand, the procedures are also illustrated using the Production

Flowchart. This aspect is essential for the requirements to be met in order to

produce Just Bags For U.

Moreover, legal aspect is also included which explains the procedures to

officially register and legalize to business to begin operating.

28 | J U S T B A G S F O R U
 PRODUCTION FLOWCHART

START

Prepare the
Wash the bags
designs that will be
before the printing
imprinted on the
process.
tote bags.

We got the
inspirations
of our
designs Have you considered the
from our customers’ request and
customers. recommendations for choosing
the designs?
Check if the
printer works
fine.
Did you let the print
Start the printing of the bags set after
process. the printing process?
Is the
packaging
durable and We let the print
distinctive? set first before
Close and packing the
wrap the bags to ensure
packaging. that the printed
We double ink won’t be
checked smudged.
the
packaging
to ensure
the
durability. END

29 | J U S T B A G S F O R U
PRODUCTION PROCESS

The production will start after we have prepared and chose the designs that

will be imprinted on the bags. Prepare and gather the necessary tools. We washed

the bags first that we will use to ensure the cleanliness and safety for our

customers.

After laying out the designs, we used a sample first to ensure that the printer

works fine. Then, we can start the printing process.

When the bags are already printed, let it set at least an hour so that the

printed ink won’t be smudged. Ensure that the packaging is durable, distinctive

and doesn't have any kind of damage before putting it inside.

Close and wrap the packaging.

PRODUCTION SCHEDULE
DAILY ALLOTTED TIME STEPS IN PRODUCT

5 minutes Prepare and gather the necessary tools.

20 minutes We washed the bags first that we will use

to ensure the cleanliness and safety for our
customers.
20 minutes After laying out the designs, we used a
sample first to ensure that the printer works
fine.
1 hour Then, we can start the printing process.

30 | J U S T B A G S F O R U
1 hour When the bags are already printed, let it set
at least an hour so that the printed ink won’t
be smudged.
30 minutes Ensure that the packaging is durable,
distinctive and doesn't have any kind of
damage before putting it inside. Close and
wrap the packaging.

Table 3. Production Schedule

PRODUCTION CAPACITY
JUST BAGS FOR U PRODUCTION CAPACITY

Production Crew 3
Working Hours 4
Production Hours 12
Divide: Hours/Packs 0.4
Production Capacity/Day 5
Table 4. Production Capacity

MANPOWER SCHEDULE
MONDAY TUESDAY WEDNESDAY
OWNER 2PM-6PM 2PM-6PM 2PM-6PM
3 PRODUCTION CREW 2PM-6PM 2PM-6PM 2PM-6PM

Table 5. Manpower Schedule

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PROCUREMENT SCHEDULE
Just Bags For U

Procurement Schedule
NO. DESCRIPTION RESPONSIBILITY METHOD

1. Tote Canvas Bags Organization Direct purchase

from market
2. Ink Organization Direct Purchase
from market
3. Printer Organization Obtained from
crew
4. Packaging Organization Direct purchase
from market
Table 6. Procurement Schedule

LEGAL ASPECT
A slew of prerequisites must be met by the business owner before a

business can begin operations. The first step for a sole proprietorship is to register

the business name with the Department of Trade and Industry (DTI). In accordance

with the business name law (Republic Act 3883), it is illegal for anyone to use any

name for a business other than the proprietor's actual name without first registering

the business name with DTI. The trademark will ensure the business's legitimacy

and operational period. Following receipt of the DTI license, the next step is to

obtain barangay clearance. Just Bags For U will bring the company to the

barangay hall where the business is located. Upon applying for a business permit,

one must also obtain a barangay clearance. Finally, the company should also be

32 | J U S T B A G S F O R U
enlisted in the Bureau of Internal Revenue (BIR) to obtain a Tax Identification

Number (TIN). A business permit is one of the requirements for a company to

operate. Presently in the Philippines, a business permit is required to ensure that

the business in question complies with the city or region's requirements while also

safeguarding the public's interest in the management of these foundations. Every

company or organization must have a license to operate in order to conduct

business using legal documents. Without this, their business is in jeopardy. That

is why, prior to going live, Just Bags For U will complete all of the organization's

qualifications.

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 CHAPTER 4:
FINANCIAL
ASPECT
The financial section of this paper includes all the forecasted financial data

of the Just Bags For U will need to support and explain the costs, expenses, and

other financial decisions to be made. It includes the Sales Budget, Production

Budget, Direct Materials Budget, Direct Labor budget, Manufacturing Overhead

Budget, and Sales & Administrative Budget. Moreover, the income statement is

also included in this chapter to get the amount of income. Whether it is net profit

or loss while Return Of Investment (ROI) will be discussed and explained.

42 | J U S T B A G S F O R U
 SALES BUDGET

Just Bags For U

Week 1 Week 2 Total

Forecasted Unit Sales 25 Forecasted Unit Sales 25 Forecasted Unit Sales 50

Price per pack Php 150.00 Price per pack Php 150.00 Price per pack Php 150.00

𝐓𝐨𝐭𝐚𝐥 𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬 𝑷𝒉𝒑 𝟑, 𝟕𝟓𝟎. 𝟎𝟎 𝐓𝐨𝐭𝐚𝐥 𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬 𝑷𝒉𝒑 𝟑, 𝟕𝟓𝟎. 𝟎𝟎 𝐓𝐨𝐭𝐚𝐥 𝐍𝐞𝐭 𝐒𝐚𝐥𝐞𝐬 𝑷𝒉𝒑 𝟕, 𝟓𝟎𝟎. 𝟎𝟎

Table 7. Sales Budget

PRODUCTION BUDGET
Just Bags For U

Week 1 Week 2 Total

Budgeted Sales 25 Budgeted Sales 25 Budgeted Sales 50

Add: Desired Ending Inventory 0 Add: Desired Ending Inventory 0 Add: Desired Ending Inventory 0

Total Needs 25 Total Needs 25 Total Needs 50

Less: Beginning Inventory 0 Less: Beginning Inventory 0 Less: Beginning Inventory 0

𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐝 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝟐𝟓 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐝 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝟐𝟓 𝐑𝐞𝐪𝐮𝐢𝐫𝐞𝐝 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐨𝐧 𝟓𝟎

Table 8. Production Budget

43 | J U S T B A G S F O R U
 DIRECT MATERIALS BUDGET
Just Bags For U

Week 1 Week 2 Total

Budgeted Production 25 Budgeted Production 25 Budgeted Production 50

Add: Desired Ending Inventory 0 Add: Desired Ending Inventory 0 Add: Desired Ending Inventory 0

Total: Direct Materials Needed 25 Total: Direct Materials Needed 25 Total: Direct Materials Needed 40

Less: Beginning Inventory 0 Less: Beginning Inventory 0 Less: Beginning Inventory 0

Required Materials Purchase 25 Required Materials Purchase 25 Required Materials Purchase 50

Cost per pack Php 120.00 Cost per pack Php 120.00 Cost per pack Php 120.00

Materials Purchase Cost Php 3,00.00 Materials Purchase Cost Php 3,000.00 Materials Purchase Cost Php 6,000.00

𝐓𝐨𝐭𝐚𝐥 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐂𝐨𝐬𝐭 𝐏𝐡𝐩 𝟑, 𝟎𝟎𝟎. 𝟎𝟎 𝐓𝐨𝐭𝐚𝐥 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐂𝐨𝐬𝐭 𝐏𝐡𝐩 𝟑, 𝟎𝟎𝟎. 𝟎𝟎 𝐓𝐨𝐭𝐚𝐥 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝐂𝐨𝐬𝐭 𝐏𝐡𝐩 𝟔, 𝟎𝟎𝟎. 𝟎𝟎

Table 9. Direct Materials Budget

COSTING OF MATERIALS

Materials Cost per piece

Tote Canvas Bags Php 30.00

Ink Php 6.5.00

Printer Php 10.00

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 Packaging Php 3.5

Cost per piece Php 50.00

Table 10. Costing of Materials

DIRECT LABOR BUDGET

Just Bags For U

Week 1 Week 2 Total

Packs 25 Packs 25 Packs 50
Hours to produce a Pack 0.4 Hours to produce a Pack 0.4 Hours to produce a Pack 0.4

Direct Labor Hours 10 Direct Labor Hours 10 Direct Labor Hours 20

Regular Hours 60 Regular Hours 60 Regular Hours 120
Rate Per Hour Php 30.00 Rate Per Hour Php 30.00 Rate Per Hour Php 30.00
𝐃𝐢𝐫𝐞𝐜𝐭 𝐋𝐚𝐛𝐨𝐫 𝐂𝐨𝐬𝐭 𝐏𝐡𝐩 𝟏, 𝟖𝟎𝟎. 𝟎𝟎 𝐃𝐢𝐫𝐞𝐜𝐭 𝐋𝐚𝐛𝐨𝐫 𝐂𝐨𝐬𝐭 𝐏𝐡𝐩 𝟏, 𝟖𝟎𝟎. 𝟎𝟎 𝐃𝐢𝐫𝐞𝐜𝐭 𝐋𝐚𝐛𝐨𝐫 𝐂𝐨𝐬𝐭 𝐏𝐡𝐩 𝟑, 𝟔𝟎𝟎. 𝟎𝟎

Table 11. Direct Labor Cost

MANUFACTURING OVERHEAD BUDGET

Just Bags For U

Week 1 Week 2 Total

Indirect Materials Php 50.00 Indirect Materials Php 30.00 Indirect Materials Php 80.00

Gloves Php 20.00 Gloves 0 Gloves Php 20.00

Printer (electricity) Php 30.00 Printer (electricity) Php 30.00 Printer (electricity) Php 60.00
𝐂𝐚𝐬𝐡 𝐏𝐚𝐢𝐝 𝐟𝐨𝐫 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐂𝐚𝐬𝐡 𝐏𝐚𝐢𝐝 𝐟𝐨𝐫 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐂𝐚𝐬𝐡 𝐏𝐚𝐢𝐝 𝐟𝐨𝐫 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠
𝐎𝐯𝐞𝐫𝐡𝐞𝐚𝐝 𝐏𝐡𝐩 𝟓𝟎. 𝟎𝟎 𝐎𝐯𝐞𝐫𝐡𝐞𝐚𝐝 𝐏𝐡𝐩 𝟑𝟎. 𝟎𝟎 𝐎𝐯𝐞𝐫𝐡𝐞𝐚𝐝 𝐏𝐡𝐩 𝟖𝟎. 𝟎𝟎

Table 12. Manufacturing Overhead Budge

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STATEMENT OF GOODS MANUFACTURED
𝐃𝐢𝐫𝐞𝐜𝐭 𝐌𝐚𝐭𝐞𝐫𝐢𝐚𝐥𝐬 𝐔𝐬𝐞𝐝:
Raw Materials Beginning Php 0.00
Add: Net Cost of Purchases
Purchases
− Raw Materials Php 6,000.00
Transportation In Php 100.00
Raw Materials Available for Use Php 6,100.00
Less: Raw Materials, ending Php 0.00
Php 6,100.00
𝐃𝐢𝐫𝐞𝐜𝐭 𝐋𝐚𝐛𝐨𝐫 Php 3,600.00
𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐎𝐯𝐞𝐫𝐡𝐞𝐚𝐝
Indirect Materials Php 80.00
𝐓𝐨𝐭𝐚𝐥 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐢𝐧𝐠 𝐂𝐨𝐬𝐭 Php 9, 780.00
𝐂𝐨𝐬𝐭 𝐨𝐟 𝐆𝐨𝐨𝐝𝐬 𝐌𝐚𝐧𝐮𝐟𝐚𝐜𝐭𝐮𝐫𝐞𝐝 Php 9, 780.00

Table 13. Statement of Goods Manufactured

INCOME STATEMENT
Just Bags For U

Week 1 Week 2 Total

Net Sales Php 3,000.00 Net Sales Php 3,000.00 Net Sales Php 6,000.00
Less: Cost of Php 1,250.00 Less: Cost of Php 1,250.00 Less: Cost of Php 2, 500.00
Goods Sold Goods Sold Goods Sold
Gross Profit Php 1, 750.00 Gross Profit Php 1,750.00 Gross Profit Php 3,500.00

Expenses Expenses Expenses

Advertising Expense 0 Advertising Expense 0 Advertising Expense 0

Utility Expense Php 50.00 Utility Expense Php 50.00 Utility Expense Php 100.00
Delivery Expense Php 50.00 Delivery Expense Php 50.00 Delivery Expense Php 1000.00

Total Expenses Php 100.00 Total Expenses Php 100.00 Total Expenses Php 200.00

𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭 𝐏𝐡𝐩 𝟏, 𝟔𝟓𝟎 𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭 𝐏𝐡𝐩 𝟏, 𝟔𝟓𝟎 𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭 𝐏𝐡𝐩 𝟑, 𝟑𝟎𝟎
Table 14. Income Statement

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Return on Investment
Just Bags For U
Return on Investment

Net Profit
ROI = x 100
Equity

Php 1,650
ROI = x 100
Php 4, 000

ROI = 0.4125 x 100

ROI = 41. 25%

Table 15. Return on Investment

The Return on Investment (ROI) was computed by dividing the total net

profit within two weeks by the organization's equity investment and multiplying the

result by 100 for conversion to percentage. The fact that the ROI is 41.25% shows

that the profit has overcome the expenses. Just Bags For U's ROI is fueled by

inexpensive yet excellent items carefully selected and bought by the company. As

a new business, an ROI of 41.25% ensures that it will be profitable.

47 | J U S T B A G S F O R U