| Sales Budget: | |||||||
| Particulars | July | August | September | October | |||
| Sales Volume in units | 40000 | 32000 | 36000 | 48000 | |||
| Selling Price per unit | $3,840.00 | $3,840.00 | $3,840.00 | $3,840.00 | |||
| Budgeted Sales Revenue | $15,36,00,000 | $12,28,80,000 | $13,82,40,000 | $18,43,20,000 | |||
| Production Budget: | |||||||
| Particulars | July | August | September | October | |||
| Sales Volume in units | 40000 | 32000 | 36000 | 48000 | |||
| Add: Closing Inventory of Finished Goods | 6400 | 7200 | 9600 | ||||
| 46400 | 39200 | 45600 | |||||
| Less: Opening Inventory of Finished Goods | 25600 | 6400 | 7200 | ||||
| Budgeted Production Volume | 20800 | 32800 | 38400 | ||||
| Direct Labour Budget: | |||||||
| Quarters | |||||||
| Particulars | July | August | September | ||||
| Budgeted Production Volume | 20800 | 32800 | 38400 | ||||
| Labor Hours required per unit | 5 | 5 | 5 | ||||
| Total Direct Labor Hour Required | 104000 | 164000 | 192000 | ||||
| Direct Labor Cost per Hour | $30.00 | $30.00 | $30.00 | ||||
| Budgeted Direct Labor Cost | $31,20,000 | $49,20,000 | $57,60,000 | ||||
| Purchase Budget: | |||||||
| Particulars | July | August | September | October | |||
| Budgeted Sales Volume | 40000 | 32000 | 36000 | 48000 | |||
| Budgeted Production Volume | 20800 | 32800 | 38400 | ||||
| Fuse required per unit | 2 | 2 | 2 | ||||
| Total Fuse Required | 41600 | 65600 | 76800 | ||||
| Add: Closing Inventory of Fuse | 38400 | 43200 | 57600 | ||||
| 80000 | 108800 | 134400 | |||||
| Less: Opening Inventory of Fuse | 48000 | 38400 | 43200 | ||||
| Budgeted Purchase Volume (in units) | 32000 | 70400 | 91200 | ||||
| Fuse Cost per unit | $48.00 | $48.00 | $48.00 | ||||
| Total Cost of Fuse | $15,36,000 | $33,79,200 | $43,77,600 | ||||
| Isolators required per unit | 3 | 3 | 3 | 3 | |||
| Total Isolators Required | 62400 | 98400 | 115200 | ||||
| Add: Closing Inventory of Isolators | 57600 | 64800 | 86400 | ||||
| 120000 | 163200 | 201600 | |||||
| Less: Opening Inventory of Isolators | 72000 | 57600 | 64800 | ||||
| Budgeted Purchase Volume (in units) | 48000 | 105600 | 136800 | ||||
| Isolators Cost per unit | $64.00 | $64.00 | $64.00 | ||||
| Total Cost of Isolators | $39,93,600 | $62,97,600 | $73,72,800 | ||||
| Budgeted Direct Material Purchase | $55,29,600 | $96,76,800 | $1,17,50,400 | ||||
| Direct Material Budget: | |||||||
| Particulars | July | August | September | ||||
| Total Fuse required for Production | 41600 | 65600 | 76800 | ||||
| Fuse Cost per unit | $48.00 | $48.00 | $48.00 | ||||
| Total Fuse Cost | $19,96,800 | $31,48,800 | $36,86,400 | ||||
| Total Isolators required for Production | 62400 | 98400 | 115200 | ||||
| Isolators Cost per unit | $64.00 | $64.00 | $64.00 | ||||
| Total Isolators Cost | $39,93,600 | $62,97,600 | $73,72,800 | ||||
| Budgeted Direct Material Cost | $59,90,400 | $94,46,400 | $1,10,59,200 | ||||
| Manufacturing Overhead Budget: | |||||||
| Particulars | July | August | September | Labor Hours | Total Maintenance Cost | ||
| 772000 | $4,73,60,000 | ||||||
| Direct Labour Hour | 104000 | 164000 | 192000 | 880000 | $5,14,40,000 | ||
| 808000 | $4,87,20,000 | ||||||
| Indirect Labor Cost per DLH | $33.60 | $33.60 | $33.60 | 736000 | $4,60,00,000 | ||
| Total Indirect Labor Cost | $34,94,400 | $55,10,400 | $64,51,200 | ||||
| Highest Labor Hours | 880000 | ||||||
| Power Cost per DLH | $3.20 | $3.20 | $3.20 | Lowest Labor Hours | 736000 | ||
| Total Power Cost | $3,32,800 | $5,24,800 | $6,14,400 | Difference | 144000 | ||
| Variable Maintenance Cost per unit | $37.78 | $37.78 | $37.78 | Highest Maintenance Cost | $5,14,40,000 | ||
| Variable Maintenance Cost | $39,28,889 | $61,95,556 | $72,53,333 | Lowest Maintenance Cost | $4,60,00,000 | ||
| Fixed Maintenance | $1,81,95,556 | $1,81,95,556 | $1,81,95,556 | Difference | $54,40,000 | ||
| Total Maintenance Costs | $2,21,24,444 | $2,43,91,111 | $2,54,48,889 | ||||
| Variable Manufacturing Cost per unit | $37.78 | ||||||
| Other Variable Cost per unit | $24.00 | $24.00 | $24.00 | Fixed Maintenance Cost | $1,81,95,556 | ||
| Other Variable Cost | $24,96,000 | $39,36,000 | $46,08,000 | ||||
| Other Fixed Cost | $80,00,000 | $80,00,000 | $80,00,000 | ||||
| Other Manufacturing Costs | $1,04,96,000 | $1,19,36,000 | $1,26,08,000 | ||||
| Supervision | $2,24,00,000 | $2,24,00,000 | $2,24,00,000 | ||||
| Depreciation | $20,00,000 | $20,00,000 | $20,00,000 | ||||
| Rates & Utilities | $16,52,800 | $16,52,800 | $16,52,800 | ||||
| Budgeted Manufacturing Overhead | $6,25,00,444 | $6,84,15,111 | $7,11,75,289 | ||||
| Cash Collection from Debtors: | |||||||
| Particulars | July | August | September | ||||
| Total Sales Revenue | $15,36,00,000 | $12,28,80,000 | $13,82,40,000 | ||||
| Collection in the month of Sales | $9,21,60,000 | $7,37,28,000 | $8,29,44,000 | ||||
| Collection in the following month of Sales | $2,43,97,900 | $5,83,68,000 | $4,66,94,400 | ||||
| Total Collection from Debtors | $11,65,57,900 | $13,20,96,000 | $12,96,38,400 | ||||
| Cash Payment of Selling & Administration Expenses: | |||||||
| Particulars | July | August | September | ||||
| Toatl Selling & Administrative Expenses | $3,74,40,000 | $2,99,52,000 | $3,36,96,000 | ||||
| Due from Debtors | $6,42,05,000 | $15,36,00,000 | $12,28,80,000 | ||||
| Bad Debts @2% | -$12,84,100 | -$30,72,000 | -$24,57,600 | ||||
| Cash Payment for Selling & Administration Expenses | $3,61,55,900 | $2,68,80,000 | $3,12,38,400 | ||||
| Cash Budget: | |||||||
| Particulars | July | August | September | TOTAL | |||
| Cash Flow from Operational Activities: | |||||||
| Collection from Debtors | $11,65,57,900 | $13,20,96,000 | $12,96,38,400 | $37,82,92,300 | |||
| Payment to Suppliers | -$55,29,600 | -$96,76,800 | -$1,17,50,400 | -$2,69,56,800 | |||
| Direct Labour Cost Paid | -$31,20,000 | -$49,20,000 | -$57,60,000 | -$1,38,00,000 | |||
| Indirect Labor Cost | -$34,94,400 | -$55,10,400 | -$64,51,200 | -$1,54,56,000 | |||
| Power Cost | -$3,32,800 | -$5,24,800 | -$6,14,400 | -$14,72,000 | |||
| Maintenance Charges Paid | -$2,21,24,444 | -$2,43,91,111 | -$2,54,48,889 | -$7,19,64,444 | |||
| Other Manufacturing Cost | -$1,04,96,000 | -$1,19,36,000 | -$1,26,08,000 | -$3,50,40,000 | |||
| Supervision | -$2,24,00,000 | -$2,24,00,000 | -$2,24,00,000 | -$6,72,00,000 | |||
| Rates & Utilities | -$16,52,800 | -$16,52,800 | -$16,52,800 | -$49,58,400 | |||
| Selling & Administration Expenses | -$3,61,55,900 | -$2,60,37,600 | -$3,02,90,700 | -$9,24,84,200 | |||
| Net Cash Flow from Operating Activities | $1,12,51,956 | $2,50,46,489 | $1,26,62,011 | $4,89,60,456 | |||
| Cash Flow from Investing Activities: | |||||||
| Purchase of Land | -$2,08,00,000 | -$2,08,00,000 | |||||
| Net Cash Flow from Investing Activities | $0 | $0 | -$2,08,00,000 | -$2,08,00,000 | |||
| Cash Flow from Financing Activities: | |||||||
| Dividend Paid | -$7,08,000 | $0 | |||||
| Loan from Bank | $0 | ||||||
| Repayment of Loan | $0 | $0 | $0 | ||||
| Interest Paid | $0 | $0 | $0 | ||||
| Net Cash Flow from Financing Activities | $0 | $0 | -$7,08,000 | -$7,08,000 | |||
| Net Increase/(Decrease) in Cash Flows | $1,12,51,956 | $2,50,46,489 | -$88,45,989 | $2,74,52,456 | |||
| Add: Opening Cash Balance | $20,00,000 | $1,32,51,956 | $3,82,98,444 | $20,00,000 | |||
| Closing Cash Balance | $1,32,51,956 | $3,82,98,444 | $2,94,52,456 | $2,94,52,456 | |||
| Cost of Goods Manufactured Statement: | |||||||
| Particulars | July | August | September | TOTAL | |||
| Direct Material Consumed | $59,90,400 | $94,46,400 | $1,10,59,200 | $2,64,96,000 | |||
| Direct Labor Cost | $31,20,000 | $49,20,000 | $57,60,000 | $1,38,00,000 | |||
| PRIME COST | $91,10,400 | $1,43,66,400 | $1,68,19,200 | $4,02,96,000 | |||
| Manufacturing Overhead | $6,25,00,444 | $6,84,15,111 | $7,11,75,289 | $20,20,90,844 | |||
| COST OF PRODUCTION | $7,16,10,844 | $8,27,81,511 | $8,79,94,489 | $24,23,86,844 | |||
| Add: Adjustment for WIP | $0 | $0 | $0 | $0 | |||
| COST OF GOODS MANUFACTURED | $7,16,10,844 | $8,27,81,511 | $8,79,94,489 | $24,23,86,844 | |||
| Budgeted Production Volume | 20800 | 32800 | 38400 | ||||
| Cost of Goods Manufactured per unit | $3,442.83 | $2,523.83 | $2,291.52 | ||||
| Closing Stock of Finished Goods | 6400 | 7200 | 9600 | ||||
| Value of Finished Goods | $2,20,34,106 | $1,81,71,551 | $2,19,98,622 | ||||
| Income Statement: | |||||||
| Particulars | July | August | September | TOTAL | |||
| Sales Revenue | $15,36,00,000 | $12,28,80,000 | $13,82,40,000 | $41,47,20,000 | |||
| Cost of Goods Manufactured | $7,16,10,844 | $8,27,81,511 | $8,79,94,489 | $24,23,86,844 | |||
| Add: Opening Finished Goods Inventory | $10,08,64,000 | $2,20,34,106 | $1,81,71,551 | $10,08,64,000 | |||
| Cost of Goods Available for Sale | $17,24,74,844 | $10,48,15,617 | $10,61,66,040 | $34,32,50,844 | |||
| Less: Closing Finished Goods Inventory | $2,20,34,106 | $1,81,71,551 | $2,19,98,622 | $2,19,98,622 | |||
| Cost of Goods Sold | -$15,04,40,738 | -$8,66,44,066 | -$8,41,67,418 | -$32,12,52,222 | |||
| GROSS PROFIT | $31,59,262 | $3,62,35,934 | $5,40,72,582 | $9,34,67,778 | |||
| Selling & Administration Expenses | -$3,61,55,900 | -$2,60,37,600 | -$3,02,90,700 | -$9,24,84,200 | |||
| Bad Debts | -$8,41,307 | -$30,72,000 | -$24,57,600 | -$63,70,907 | |||
| NET OPERATING INCOME | -$3,38,37,945 | $71,26,334 | $2,13,24,282 | -$53,87,329 | |||
| Impact of New Facility: | |||||||
| Particulars | Pre-Facility | % of Sales | Post-Facility | % of Sales | |||
| Sales | $41,47,20,000 | 100% | $41,47,20,000 | 100% | |||
| Direct Material | $2,64,96,000 | 6.39% | $1,98,72,000 | 4.79% | |||
| Direct Labor Cost | $1,38,00,000 | 3.33% | $1,03,50,000 | 2.50% | |||
| Variable Manufacturing Overhead | $4,53,45,778 | 10.93% | $4,53,45,778 | 10.93% | |||
| Fixed Manufacturing Overhead | $15,67,45,067 | 37.80% | $23,51,17,600 | 56.69% |
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