Income Statem

Actual Particulars Revenue Less: Less; Less: Less: 210

units
Actual Total 94500000 81565300 12934700 1463000 11471700 0 11471700 4015095 7456605

450000
Per Unit 210 181.2562 28.74378 3.251111 25.49267

Cost Of Good Sold

GROSS MARGIN

Non Manufacturing Overhead

OPERATING INCOME (EBDIT) Interest EBT Taxes 35% (ASSUMED) EAT

Schedule 1

Cost Of Good Sold

Opening Stock of Finished Goods Add: Less:

Cost Of Goods Manufactured

Cost Of Goods Available For Sale Closing Stock Of Finished Goods Cost Of Good Sold

360000 81205300 81565300 0 81565300

Schedule 2

Cost Of Goods Manufactured

Direct Material Used (From schedule 3)

Add: Direct Labour Cutiing Per shirt Stichinh Per shirt Manufacturing Overhead Button 2 cuff 1.5 Collar 4.5 Thread 8 Salaries to Factory Worker Depreciation of sewing machine Depreciation Over lock machine Depreciation of steam iron Electricity, Power etc Factory Rent Repairs & Maintenance 2 18 per shirt per shirt per shirt per shirt 900000 8100000

63000000

9000000 900000 675000 2025000 3600000 1800000 30000 4800 500 40000 120000 10000 81205300 0 81205300

Add:

Opening Stock Of Work in Process Manufacturing cost to account for

Less:

Closing Stock Of Work in Process Cost Of Goods Manufactured

0 81205300

Schedule 3

Direct Material Used

Add: Less: Opening Stock of Material Purchases 1.75 Cost Of Material Available for use Closing Stock Of Material Direct Material Used Schedule 4 0 80 63000000 63000000 0 63000000

Non Manufacturing Overhead

Add: Advertising Agent Comission Travelling Expenses Carriage outward Mis Exp 1% On Sales 0.01 20000 945000 18000 180000 300000 1463000

Income Statement
Budgeted Particulars Revenue Less: Less; Less: Less: 200

0000

units
Budgeted Total 90000000 85863300 4136700 1418000 2718700 0 2718700 951545 1767155

450000

Cost Of Good Sold

GROSS MARGIN

Non Manufacturing Overhead

OPERATING INCOME (EBDIT) Interest EBT Taxes 35% ASSUMED EAT

Schedule 1

Cost Of Good Sold

Opening Stock of Finished Goods Add: Less:

Cost Of Goods Manufactured

Cost Of Goods Available For Sale Closing Stock Of Finished Goods Cost Of Good Sold

0 85863300 85863300 0 85863300

Schedule 2

Cost Of Goods Manufactured Direct Material Used

Add: Direct Labour Cutiing Per shirt Stichinh Per shirt Manufacturing Overhead Button 1.5 cuff 1.5 Collar 4 thread 9 Salaries to Factory Worker Depreciation of sewing machine Depreciation Over lock machine Depreciation of steam iron Electricity, Power etc Factory Rent Repairs & Maintenance 1 17 per shirt per shirt per shirt per shirt 450000 7650000 70200000

8100000 675000 675000 1800000 4050000 30000 4800 500 37000 120000 6000 165000 85863300 0 85863300

Add:

Opening Stock Of Work in Process Manufacturing cost to account for

Less:

Closing Stock Of Work in Process Cost Of Goods Manufactured

0 85863300

Schedule 3

Direct Material Used

Add: Less: Opening Stock of Material Purchases 2 Cost Of Material Available for use Closing Stock Of Material Direct Material Used Schedule 4 0 78 70200000 70200000 0 70200000

Non Manufacturing Overhead

Add: Advertising Agent Comission Travelling Expenses Carriage outward Mis Exp 1% On Sales 0.01 20000 900000 18000 180000 300000 1418000

450000 Per Unit 200 190.8073 9.192667 3.151111 6.041556

geted

Production in units

Variable Cost Name Amount Material 1) Cloth 63000000

Fixed Cost Per unit 140 Name Manufacturing Overhead Non Manufacturing Overhead Total Fixed Cost Contribution

Total Variable Cost

140

No. of Fixed Units Sold Cost(FC)

0 50000 100000 150000 200000 250000 300000 350000 400000 450000 19668300 19668300 19668300 19668300 19668300 19668300 19668300 19668300 19668300 19668300

Total Total Variable Cost(TVC) Total Cost Revenue( Profit (TR(TC) TR) TC) Selling Price per unit
0 7000000 14000000 28000000 28000000 35000000 42000000 49000000 56000000 63000000 19668300 26668300 33668300 47668300 47668300 54668300 61668300 68668300 75668300 82668300 0 10500000 21000000 31500000 42000000 52500000 63000000 73500000 84000000 94500000 -19668300 -16168300 -12668300 -16168300 -5668300 -2168300 1331700 4831700 8331700 11831700 210 210 210 210 210 210 210 210 210 210

Total Cost (TC)

No. of Units Sold Total Variable Cost(TVC) Profit (TR-TC)

120000000
Fixed Cost(FC)

100000000
Total Revenue(TR)

80000000 60000000

BREAK EVEN POINT

60000000 40000000 20000000 0 -20000000 -40000000

Particular Sales Variable Cost Contribution Fixed Cost Profit

50000 100000

150000 200000 250000

Less: Less:

Break Even Point

Fixed Cost Contibution 19668300 70 =

450000

Manufacturing Overhead
Direct Labour Cutiing Per shirt Stichinh Per shirt Manufacturing Overhead Button 2 cuff 1.5 Collar 4.5 Thread 8 Salaries to Factory Worker Depreciation of sewing machine Depreciation Over lock machine Depreciation of steam iron Electricity, Power etc Factory Rent Repairs & Maintenance Opening Srock Of Work in Process Manufacturing cost to account for Closing Stock Of Work in Process Manufacturing Overhead

Fixed Cost Amount 18205300 1463000 Total Fixed Cost Contribution Fixed Cost Contribution 40.45622 19668300 3.251111 43.70733

Non Manufacturing Overhead Advertising Agent Comission 1% On Sales Travelling Expenses Carriage outward Mis Exp

Units Sold

Variable Cost(TVC)

AK EVEN POINT

200000 250000 300000 350000

400000 450000

Total Per Unit 94500000 210 63000000 140 31500000 70 19668300 11831700

280975.714 units

g Overhead
2 18 per shirt per shirt per shirt per shirt 900000 8100000 9000000 900000 675000 2025000 3600000 1800000 30000 4800 500 40000 120000 10000 18205300 0 18205300 0 18205300

ork in Process

rk in Process

turing Overhead 1% On Sales 0.01 20000 945000 18000 180000 300000 1463000

Static Budget Variance

Direct Material Cloth Budgeted 2 mtr 78

Sales Volume Variance (Budgeted Quantity X Budget Price) - (Actual Quantity X Actual P

450000

X 90000000

200 -

-4500000 Price Variance ( Budgeted Price - Actual Price) X Actual Quantity (200 - 210) X 450000 -4500000 -4500000

Production Volume Variance

a) Material Variance

CLOTH
Variance due to the fact that units produced were less than units budgeted

Budgeted 2 X 78 X 450000= Actual 1.75 X 80 X 450000

(Budgeted cost of manufacturing 450000 units) - (Budgeted cost of manufacturing 450000 units)
2 X 78 X 450000 - 2 X 78 X 450000

PRICE (Purchase Manager) (Std rate/unit - Act rate/unit ) X (Act total qnty used) (80- 78) X 787500 -1575000

7200000

Units Budgeted Selling Price Actual Price Selling Price Actual Cloth Rate Per meter Budgeted Cloth Rate Per meter Actual Quantity used Budgeted Quantity Used

450000 200 210 80 90 787500 900000

iance
Actual 1.75 mtr 80

- (Actual Quantity X Actual Price)

450000

X 94500000

210

Quantity Variance (Budgeted Quantity - Actual Quantity) X Budgeted Price (450000 - 450000) X 200 0

Variance

aterial Variance
70200000 63000000 7200000 Variance showing manufacturing efficiency in the actual unit produced

uring 450000 units)

(Budgeted cost of manufacturing 450000 units) - (Actual cost of manufacturing 45000

(1.75 X 78 X 450000) - (2 X 80 X 450000)

7200000

Usage (Production Manager) (Std total qnty - Act Total qnty) X Std rate/unit (900000 - 787500) X 78 8775000

1.75 mtr Per shirt 2 mtr Per shirt

Budgeted Price

cost of manufacturing 450000 units)