Management Accounting By Paresh Shah Oxford University Press Chapter No.

Chapter Name 12 Budgeting And Budgetary Control System

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Charmi Company Limited

Sales Budget
for the Year ended 31st December Product Quantity Selling Units Price B T Total Amount 0 0 0

Production Budget
for the Year ended 31st December Product Particulars B T Units Units Budgeted Sales 0 0 Desired Closing Stock 0 0 Less: Opening Stock Units to be Produced 0 0

Direct Labour Budget

for the Year ended 31st December Product Quantity Direct Labour Total Produced Hours Time Units Per unit Hrs B 1 1 1 T 1 1 1 2 Hourly Wage Rate Total Amount Rs. 0 0 0

Direct Materials Usage Budget

for the Year ended 31st December Materials P Q Particulars Kgs Kgs Product B Product T Total Material Required 0 0 Price Per Kg Total Cost of Direct Materials 0 0 Total Rs.

Production Budget
for the Year ended 31st December Materials Particulars Total

Particulars Direct Material Required For Production Desired Closing Stock Total Requirements Opening Stock (Raw Materials) Purchases Price Per Kg Cost of Purchases

P Kgs 0 0 0 0 0

Q Kgs 0 0 0 0 0

Rs.

Factory Overhead Budget

for the Year ended 31st December Particulars Depreciation Other Items Total Overhead Absorption Rate Activity Level 2 Direct Labour Hrs

0 0

Rs. Per Direct Labour Hour

Inventory Budget
for the Year ended 31st December Particulars Qty. (kgs) Price (Rs.) Direct Labour P 0 0 Q 0 0 Finished Stock B 0 T 0 Total Amount 0 0 0 0

0 0

Cost of Goods Sold Budget

for the Year ended 31st December Particulars Total Amount Opening Stock B T Direct Materials Direct Wages 0 Factory Overheads 0 Works Cost 0 Administration Overhead Cost of Production Cost of Goods Available for Sale Less: Closing Stock Cost of Goods Sold

0 0 0

Cash Budget Particulars January Rs. Opening Balance Receipts Issue of equity shares Collections from debtors (A) Payments Creditors-Raw materials Commission on sales Salaries & fixed expenses Capital expenditure (B) Closing balance Budgeted Balance Sheet Particulars Rs. Share capital Share premium Retained profit
0

February Rs.

Months March Rs.

April Rs.

0 0

0 0

0 0

0 0

Amount Rs.

Represented by: Fixed assets Stock Debtors: Sales during the period - Rs.3,80,000 Less: Collection from debtors - Rs.3,40,000 Cash Total Creditors: Goods Purchases during the period - Rs.3,15,000 Less: Payments to creditors - Rs.2,85,000 Commission on sales (Junes)

0
0 Answer is Right

May Rs.

June Rs.

0 0

0 0

Raw Materials Budget Particulars Material Q Material R Raw Material Required (Kgs/bag) Budgeted Usage (Kgs) Add: Desired Closing Stock (Kgs) Less: Opening Stock (Kgs) Budgeted Purchases (Kgs) 0 0 Purchase Price Rs/Kg Cost of Purchase 0 0 Budgeted Net Income Particulars Sales Revenue Less: Variable Costs: Manufacturing Selling & Admin. Contribution Less: Fixed Costs Budgeted Net Profit

Empty bags

0 0

Total (Rs.)

0 0

Product Target Factory Hours per week

= =

1. Computation of number of operators required Operation No. Time Per Article (mins) No. of Operators Required 1 2 3 4 5

2. Statement showing total no. of operators required, labour cost per dozen and total labour cost per week Operation No. of Operators Labour cost Labour Cost No. Required Per Week Per Dozen 1 0 2 0 3 0 4 0 5 0 Total 0 0 0.00

Production Budget Particulars Budgeted Sales (units) Add: Targeted Closing Stock (units) Less: Anticipated Operating Stock (units) Budgeted Production (units) Raw Material Usage and Cost Budget Product A B Total Raw Material Purchase and Cost Budget Particulars Budgeted Usage (units) Add: Closing Stock (units) Less: Opening Stock (units) Budgeted purchases (units) Cost of purchase (Rs.) Total Cost of Purchase = Rs. Labour Hours and Cost Budget Particulars a. Budgeted Production (units) b. Standard Hours per unit (Hrs) c. Total Standard Hours (Hrs) d. Required Hours (Hrs) e. Non-productive downtime (Hrs) f. Hours to be worked and paid for (Hrs)

Product A

Product B

Production Quantity (units)

Usage of RM X (units)

Material X

Material Y

Product A

Product B

Cost of RM X (Rs.)

Usage of RM Y (units)

Cost of RM Y (Rs.)

Total RM Cost (Rs.) 0 0 0

Total

Flexible Budget Particulars Sales Administrative Costs Office Salaries General Expenses Depreciation Rates & Taxes Total Administrative Costs Selling Costs Salaries Travelling Expenses Sales Office Expenses General Expenses Total Selling Costs Distribution Costs Wages Rent Other Expenses Total Distribution Costs Total Costs Level of Activity 10% 20% 30%

0 0

0 0

0 0

0 0

Statement of Flexible Budget, Profit Particulars Variable Costs: Direct Materials Direct Labour Variable Factory Overheads Variable Selling Overheads Total Variable Costs (A) Fixed Costs: Fixed Factory Overheads Fixed Selling Overheads Administrative Overheads Total Fixed Costs (B) Total Cost Add: Profit SALES REVENUE Less: Total Variable Costs CONTRIBUTION Cost based on previous year Total Cost

0 0 0 0 0

Flexible Budget

Particulars Sales Quantity (units) Selling Price per unit (Rs.) Total Sales Revenue (Rs.) Variable Costs: Materials Labour Cost Variable POH Variable SOH Contribution Less: Fixed Costs Factory Overhead Selling and Admin. Overhead Profit

Present Scenario

Proposal 1 Proposal 2

Particulars Quantity (units) Material A Material B Labour Variable Labour Fixed Labour-Overtime Premium Mfg Overhead Variable Mfg Overhead Fixed Depreciation fixed Total Production Costs

Flexible Budget Minimum Quantity Most Likely Quantity

0.00

0.00

Maximum Quantity

0.00