Sales Budget

Corn Flakes Baby Corn

Price 350 125
Units 45000 60000

Quarter 1 Quarter 2 Quarter 3 Quarter 4 Yearly

Corn Flake
Budgeted Sales
(units) 7,200 12,600 13,500 11,700 45,000
Price 350 350 350 350
Total Sales 2,520,000 4,410,000 4,725,000 4,095,000 15,750,000

Baby Corn
Budgeted Sales
(units) 16,200 15,000 13,800 15,000 60,000
Price 125 125 125 125
Total Sales 2,025,000 1,875,000 1,725,000 1,875,000 7,500,000

TOTAL 4,545,000 6,285,000 6,450,000 5,970,000 23,250,000

Corn Flakes Yearly sales 45,000 boxes with quarterly breakup in the following ratio
Price Rs350 per Box
1st Quarter Sales 16%
2nd Quarter Sales 28%
3rd Quarter Sales 30%
4th Quarter sales 26%

Baby Corn Yearly sales 60,000 Tins with quarterly breakup in the following ratio
Price Rs 125 per Tin
1st Quarter Sales 27%
2nd Quarter Sales 25%

3rd Quarter Sales 23%

4th Quarter sales 25%

y breakup in the following ratio

breakup in the following ratio

 Q3 Q4 Q1 Q2 Q3 Q4
Balance 1,260,000 1,130,000 909,000 1,257,000
Last Quarter 1,575,000 1,412,500 1,136,250 1,571,250 1,612,500
Current Quarter 3,465,000 3,107,500 2,499,750 3,456,750 3,547,500 3,283,500
Total Collection 3,465,000 4,682,500 5,172,250 5,723,000 6,027,750 6,153,000

Balance receivable
Q3 2,835,000 1,260,000 - - - -
Q4 2,542,500 1,130,000 - - -
Q1 2,045,250 909,000 - -
Q2 2,828,250 1,257,000 -
Q3 2,902,500 1,290,000
Q4 2,686,500
Annual Receivables Policy
4,556,000
7,307,500 · 55% of sales in the same quarter
19,360,000 · 25% in next quarter
31,223,500

· Balance amount quarter subsequent to n

· Amount of sales made in 3rd quarter of l
Amount of sales made in 4th quarter of last year was Rs5.65
es in the same quarter

mount quarter subsequent to next quarter

sales made in 3rd quarter of last year was Rs6.3 millions
uarter of last year was Rs5.650 millions
 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual
Corn Flakes
Budgeted Sales 7,200 12,600 13,500 11,700 45,000
Add: Desired ending inventory 2,880 5,040 4,725 1,980 14,625
Total Needed 10,080 17,640 18,225 13,680 59,625
Less: beginning inventory 1,800 2,880 5,040 4,725 14,445
Required Production 8,280 14,760 13,185 8,955 45,180

Baby Corn
Budgeted Sales 16,200 15,000 13,800 15,000 60,000
Add: Desired ending inventory 4,860 3,750 4,140 5,346 18,096
Total Needed 21,060 18,750 17,940 20,346 78,096
Less: beginning inventory 4,860 4,860 3,750 4,140 17,610
Required Production 16,200 13,890 14,190 16,206 60,486

Total Production 24,480 28,650 27,375 25,161 105,666

Corn Flakes (Finished Inventory Policy)
Year’s Beginning Inventory
Ist Quarter ending Inv
2nd Quarter ending Inv
3rd Quarter ending Inv
4th Quarter ending Inv
Baby Corn (Finished Inventory Policy)
Year’s Beginning Inventory
Ist Quarter ending Inv
2nd Quarter ending Inv
3rd Quarter ending inv
4th Quarter ending inv
25% of current quarter’s sales
40% of current quarter’s sales
40% of current quarter’s sales
35% of current quarter’s sales
1.1 times the beginning inventory of the year
30% of current quarter’s sales
30% of current quarter’s sales
25% of current quarter’s sales
30% of current quarter’s sales
1.1 times the beginning inventory of the year
 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual
Corn Flakes
Production 8,280 14,760 13,185 8,955 45,180
Materials per
unit needed 51 51 51 51

Add: Desired
ending inventory 168,912 301,104 235,352 116,127 821,495
Total Needed 591,192 1,053,864 907,787 572,832 3,125,675
Less: Beginning
inventory 105,570 168,912 301,104 235,352 810,938
Material to be
purchased 485,622 884,952 606,683 337,480 2,314,737

Baby Corn
Production 16,200 13,890 14,190 16,206 60,486
Materials per
unit needed 125 125 125 125

Add: Desired
ending inventory 607,500 434,063 532,125 668,250 2,241,938
Total Needed 2,632,500 2,170,313 2,305,875 2,694,000 9,802,688
Less: Beginning
inventory 607,500 607,500 434,063 532,125 2,181,188
Material to be
purchased 2,025,000 1,562,813 1,871,813 2,161,875 7,621,500
Corn Flakes (Materials Inventory Policy)
Year’s Beginning Inventory 25% of current qtr’s mat. required for production
Ist Quarter ending Inv 40% of current qtr’s mat. required for production

2nd quarter ending Inv 40% of current qtr’s mat. required for production

3rd Quarter ending Inv 35% of current qtr’s mat. required for production

4th Quarter ending Inv 1.1 times the beginning inventory of the year

Baby Corn (Materials Inventory Policy)

Beginning Inventory 30% of current qtr’s mat. required for production
Ist Quarter ending Inv 30% of current qtr’s mat. required for production

2nd Quarter ending inv 25% of current qtr’s mat. required for production

3rd Quarter ending Inv 30% of current qtr’s mat. required for production

4th Quarter ending Inv 1.1 times the beginning inventory of the year

Direct Material

Corn Flakes 3 kg to produce one unit @ Rs 17/ Kg

Baby Corn 5 kg to produce one unit @ Rs 25/ Kg
 n
on

n
 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual
Last Quarter 960,000 1,004,249 979,106 991,398 3,934,753
Current Quarter 1,506,373 1,468,659 1,487,097 1,499,613 5,961,742
Total Disbursement 2,466,373 2,472,908 2,466,203 2,491,011 9,896,495

Payable
Q4 960,000
Q1 1,004,249
Q2 979,106
Q3 991,398
Q4
 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual
Corn Flakes
Production 8,280 14,760 13,185 8,955 45,180
Direct Labor hours 4 4 4 4
Labor hours required 33,120 59,040 52,740 35,820 180,720
Rate 30 30 30 30
Total 993,600 1,771,200 1,582,200 1,074,600 5,421,600

Production 16,200 13,890 14,190 16,206 60,486

Direct Labor hours 2 2 2 2
Labor hours required 32,400 27,780 28,380 32,412 120,972
Rate 15 15 15 15
Total 486,000 416,700 425,700 486,180 1,814,580
Corn Flakes - Direct Labour Hour 4 DLH per unit paid @ Rs30 per DLH
Baby Corn - Direct Labour Hour 2DLH per unit paid @ Rs15 per DLH
 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual
Labour hours required 65,520 86,820 68,232 301,692 522,264
Variable mfg OH Rate 2.5 2.5 2.5 2.5
Variable mfg OH costs 163,800 217,050 170,580 754,230 1,305,660
Fixed mfg OH costs 127,500 127,500 127,500 127,500 510,000
Total mfg Oh cost 291,300 344,550 298,080 881,730 1,815,660
Less noncash costs 24,000 24,000 24,000 24,000 96,000

Cash disbursement 267,300 320,550 274,080 857,730 1,719,660

 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Annual
Budgeted Sales

Variable Selling and

Admin Expenses
Variable expense

Fixed selling and

admin expense