COMPLETE MASTER BUDGET FOR 2023

1. Sales Budget

Sales	Units	Price (RM)	Sales (RM)
Sales	40,000	90	3,600,000
Production Budget	Units	Costs (RM)
Required Units from Sales	40,000
Required Units for Ending	1,500
Beginning Units	3,125	85
Units to Produce	38,375
Raw Materials Budget	Raw Materials per Unit	Costs per Unit (RM)
Raw Materials	Raw Materials per Unit	10
Required Raw Materials	Raw Materials per Unit	10
Ending Raw Materials Estimate	Raw Materials per Unit	10
Beginning Raw Materials	Raw Materials per Unit	10
Raw Materials to Purchase	Raw Materials per Unit	10

2. Direct Labor Budget

II . Direct Labour Budget
Direct Labour (DL) Budget	DL Hour per Unit	DL Rate (RM)	DL Hours Required	DL Cost (RM)
Direct Labour	4	7	153,500	1,074,500
Overhead Budget
Variable Overhead	Pre-determined Rate	DL Hours Required	Variable Overhead Costs (RM)
Variable Overhead	1.5	153,500	230,250
Fixed Overhead	RM
Factory Rent	120,000
Depreciation for Machines	30,000
Factory Maintenance and Cleaning	60,000
Total Fixed Overhead	210,000
Total Overhead	440,250

3. Selling and Administration Budget

Selling and Admin	(RM)
Advertising	150,000
Salaries	360,000
Office Expenses	30,000
Depreciation of Office Equipment	40,000
Rent of the Admin Building	60,000
Total Selling and Admin	640,000

4. Manufacturing Cost

Direct Materials	RM
Beginning Raw Materials Inventory	40,000
Add: Purchase of Raw Materials	112,125
Raw Materials Available for Use	152,125
Deduct: Ending Raw Materials Inventory	50,000
Raw Materials Used in Production	102,125
Direct Labour	1,074,500
Manufacturing Overhead
Variable Overhead	230,250
Fixed Overhead	210,000
Total Manufacturing Overhead Costs	440,250
Total Manufacturing Costs	1,616,875
Total Unit Produced	38,375
Product Costs	42.13
Ending Finished Goods	210,668

5. Cost of Good Sold

Costs of Goods Sold
Beginning Finished Goods Inventory	200,000
Add: Costs of Goods Manufactured	1,616,875
Goods Available for Sale	1,816,875
Deduct: Ending Finished Goods Inventory	210,668
Costs of Goods Sold	1,606,207

6. Quarterly Budget Report

Period	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Annual
Percentage from Annual	10%	30%	40%	20%	100%
Sales Units	4,000	12,000	16,000	8,000	40,000
Sales (RM)	360,000	1,080,000	1,440,000	720,000	3,600,000
Production Budget	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Annual
Required Units from Sales	4,000	12,000	16,000	8,000	40,000
Required Units from Ending	1,500	1,500	1,500	1,500	1,500
Beginning Units	2,353	1,500	1,500	1,500	2,353
Units to Produce	3,147	12,000	16,000	8,000	39,147
Raw Materials Budget	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Annual
Required Raw Materials	9,441	36,000	48,000	24,000	117,441
Ending Raw Materials Estimate	1,250	1,250	1,250	1,250	5,000
Beginning Raw Materials	8,000	1,250	1,250	1,250	8,000
Raw Materials to Purchase	2,691	36,000	48,000	24,000	110,691
Raw Materials Costs (RM)	26,910	360,000	480,000	240,000	1,106,910
Direct Labour Budget	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Annual
Direct Labour Hours Required	12,588	48,000	64,000	32,000	156,588
Direct Labour Costs (RM)	88,116	336,000	448,000	224,000	1,096,116
Variable Overhead	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Annual
Variable Overhead Allocation	12,588	48,000	64,000	32,000	156,588
Variable Overhead Costs (RM)	18,882	72,000	96,000	48,000	234,882
Fixed Overhead	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Annual
Factory Rent	30,000	30,000	30,000	30,000	120,000
Depreciation for Machines	7,500	7,500	7,500	7,500	30,000
Factory Maintenance and Cleaning	15,000	15,000	15,000	15,000	60,000
Total Fixed Overhead	52,500	52,500	52,500	52,500	210,000
Selling and Admin	Quarter 1	Quarter 2	Quarter 3	Quarter 4	Annual
Advertising	37,500	37,500	37,500	37,500	150,000
Salaries	90,000	90,000	90,000	90,000	360,000
Office Expenses	7,500	7,500	7,500	7,500	30,000
Depreciation of Office Equipment	10,000	10,000	10,000	10,000	40,000
Rent of the Admin Building	15,000	15,000	15,000	15,000	60,000
Total Selling and Admin	160,000	160,000	160,000	160,000	640,000

7.Cash Budget

8. Income Statement

9. Balance sheet

C. Prepare a performance analysis on the budget which includes financial ratio analysis, economic value-added analysis, and market value analysis, between 2022 and the budget

\begin{tabular}{|l|r|r|} \hline \multicolumn{1}{|c|}{ Income Statement } & \multicolumn{1}{c|}{2022} & \multicolumn{1}{c|}{2023} \\ \hline Sales & 2,500,000 & 3,600,000 \\ \hline Cost of Goods Sold & 1,650,000 & 2,740,000 \\ \hline Gross Margin & 850,000 & 860,000 \\ \hline Selling and Admin Expense & 540,000 & 600,000 \\ \hline EBITDA & 310,000 & 260,000 \\ \hline Depreciation & 25,000 & 70,000 \\ \hline EBIT & 285,000 & 190,000 \\ \hline Interest Expense & 48,000 & 60,500 \\ \hline Earning Before Tax & 237,000 & 129,500 \\ \hline Corporate Tax & 59,250 & 73,525 \\ \hline Net Income & 177,750 & 55,975 \\ \hline \hline & & \\ \hline Previous Retain Earnings & 207,250 & 482,250 \\ \hline Add: Net Income & 177,750 & 17,750 \\ \hline Less: Dividends & 335,000 & 70,000 \\ \hline New Retain Earnings & 394,500 \\ \hline \end{tabular} IX. Balance Sheet \begin{tabular}{|c|c|c|} \hline Balance Sheet & 2022 & 2023 \\ \hline \multicolumn{3}{|l|}{ Current Assets } \\ \hline Cash & 49,250 & - \\ \hline Trade Receivables & 70,000 & 108,000 \\ \hline Raw Materials & 80,000 & 50,000 \\ \hline Inventories & 200,000 & 96,000 \\ \hline Total Current Assets & 399,250 & 254,000 \\ \hline Land & 1,000,000 & 1,000,000 \\ \hline Equipment & - & 250,000 \\ \hline Plant and Machines & 1,645,000 & 1,645,000 \\ \hline Less: Accumulated Depreciation & 900,000 & 970,000 \\ \hline Plant and Machines Net & 745,000 & 925,000 \\ \hline Total Assets & 2,144,250 & 2,179,000 \\ \hline \multicolumn{3}{|l|}{ Current Liabilities } \\ \hline Overdraft & - & 234,500 \\ \hline Trade Payable & 150,000 & - \\ \hline Short term loan & - & - \\ \hline Taxes Payable & 59,250 & - \\ \hline Total Current Liabilities & 209,250 & 234,500 \\ \hline Non-Current Liabilities & 600,000 & 550,000 \\ \hline \multicolumn{3}{|l|}{ Stockholder's Equity } \\ \hline Common Stock & 1,000,000 & 1,000,000 \\ \hline Retained Earnings & 335,000 & 394,500 \\ \hline Total Equity & 1,335,000 & 1,394,500 \\ \hline Total Liabilities and Equity & 2,144,250 & 2,179,000 \\ \hline \end{tabular} VII. Cash Budget \begin{tabular}{|c|c|c|c|c|c|} \hline Sales Budget (End of Quarter) & Quarter 1 & Quarter 2 & Quarter 3 & Quarter 4 & Annual \\ \hline Total Sales (RM) & 360,000 & 1,080,000 & 1,440,000 & 720,000 & 3,600,000 \\ \hline% of customers pay in the period & 100% & 100% & 90% & 85% & \\ \hline% of customers pay after the period & 0% & 0% & 10% & 15% & \\ \hline Trade Receivable Last Year & 70,000 & & & & 70,000 \\ \hline First Sales & 360,000 & - & & & 360,000 \\ \hline Second Sales & & 1,080,000 & - & & 1,080,000 \\ \hline Third Sales & & & 1,296,000 & 144,000 & 1,440,000 \\ \hline Fourth Sales & & & & 612,000 & 612,000 \\ \hline Total Cash Collections (Cash Coming in) & 430,000 & 1,080,000 & 1,296,000 & 756,000 & 3,562,000 \\ \hline \multicolumn{5}{|l|}{ Trade Receivable Budget } & 108,000 \\ \hline Payment for Raw Materials Purchased & Quarter 1 & Quarter 2 & Quarter 3 & Quarter 4 & Annual \\ \hline Cost of Raw Materials to be Purchased & 26,910 & 360,000 & 480,000 & 240,000 & 1,106,910 \\ \hline% of payment in the period of purchase & 50% & 50% & 50% & 50% & \\ \hline% of payment after the period of purchase & 50% & 50% & 50% & 50% & \\ \hline Accounts Payable Beginning Balance & 150,000 & & & & 150,000 \\ \hline First Purchase & 13,455 & 13,455 & & & 26,910 \\ \hline Second Purchase & & 180,000 & 180,000 & & 360,000 \\ \hline Third Purchase & & & 240,000 & 240,000 & 480,000 \\ \hline Fourth Purchase & & & & 120,000 & 120,000 \\ \hline Total Disbursements for Materials & 163,455 & 193,455 & 420,000 & 360,000 & 1,136,910 \\ \hline \end{tabular} Trade Payable Budget 120,000 \begin{tabular}{|c|c|c|c|c|c|} \hline Cash Budget & Quarter 1 & Quarter 2 & Quarter 3 & Quarter 4 & Annual \\ \hline Cash Balance Beginning & 49,250 & 39,297 & 77,092 & 27,592 & 49,250 \\ \hline ADD: Receipts & 430,000 & 1,080,000 & 1,296,000 & 756,000 & 3,562,000 \\ \hline Total Cash Available & 479,250 & 1,119,297 & 1,373,092 & 783,592 & 3,611,250 \\ \hline \multicolumn{6}{|l|}{ LESS: Disbursements } \\ \hline Direct Materials & 163,455 & 193,455 & 420,000 & 360,000 & 1,136,910 \\ \hline Direct Labour & 88,116 & 336,000 & 448,000 & 224,000 & 1,096,116 \\ \hline Variable Overhead & 18,882 & 72,000 & 96,000 & 48,000 & 234,882 \\ \hline Fixed Overhead & 45,000 & 45,000 & 45,000 & 45,000 & 180,000 \\ \hline Selling and Admin & 150,000 & 150,000 & 150,000 & 150,000 & 600,000 \\ \hline Corporate Tax & & 59,250 & & & 59,250 \\ \hline Equipment Purchase & 250,000 & & & & 250,000 \\ \hline Pay Long Term Principal & 12,500 & 12,500 & 12,500 & 12,500 & 50,000 \\ \hline Pay Interest Long Term & 12,000 & 12,000 & 12,000 & 12,000 & 48,000 \\ \hline Dividends & & & & 70,000 & 70,000 \\ \hline Total Disbursements & 739,953 & 880,205 & 1,183,500 & 921,500 & 3,725,158 \\ \hline Excess (Deficits) of Cash & 260,703 & 239,092 & 189,592 & 137,908 & 113,908 \\ \hline \multicolumn{6}{|l|}{ Financing } \\ \hline Borrowing in the Quarter & 300,000 & & & & 300,000 \\ \hline Repayment of Borrowings & & 150,000 & 150,000 & & 300,000 \\ \hline Interest & & 12,000 & 12,000 & & 24,000 \\ \hline Total Financing & 300,000 & 162,000 & 162,000 & - & 24,000 \\ \hline Sash Balance Ending & 39,297 & 77,092 & 27,592 & 137,908 & 137,908 \\ \hline \end{tabular}