Direct material -1 Direct material item name: Tamarind (For Tamarind pickle) Quantity required for each unit of product: 15g Tamarind Desired ending inventory as a percentage of following months production requirement: 4500g per month Price per unit of direct material: $5

direct material -2 Direct material item name: Sugar Quantity required for each unit of product: 30g Desired ending inventory as a percentage of following months production requirement: 3000 Price per unit of direct material: $2

Direct material item-3 Direct material item name: oil Quantity required for each unit of product: 10 ml Desired ending inventory as a percentage of following months production requirement: 2000 ml Price per unit of direct material: $3 Direct material name Per unit cost Tamarind $ 5 Sugar $2 Oil $ 3

Here, Our Manufacturing overhead: 1. Gas - $500 ( variable) 2. Rent $2000 ( Fixed) 3. Plastic cup- $300 (variable) 4. Plastic spoon- $100 ( Variable) 5. Depreciation- $15.8 (Fixed) 6. Insurance- $ 30 ( Fixed) Therefore, Total MOH $2945.8

Now, we will make some estimations about the number of units of product our business will expects to sell over the next 12 months. Filling out the below table about sales estimates.

Assume all sales will be in cash and you will collect 100% of the revenue. Since you are going to sell a food item, no ending inventory of finished goods will be maintained. Each unit will be manufactured after an order is received. All purchases for all direct materials are made fully in cash. You want to draw a dividend/drawings of BDT 20,000 every month as the sole owner of your business. [This is your dividend/drawings, you will not use this money for operating your business.] At the end of each month, you want to have at least BDT 50,000 cash available for operating your business. You will start the business with a cash investment of BDT 500,000. You can borrow up to BDT 200,000 from your best friend to invest in your business. You may repay any borrowed amount, even if you have sufficient cash available, any time during the next year. Requirements: Based on the assumptions you have formed above, prepare a Master Budget consisting of the following components in the Google Sheet attached to this assignment. 1. Sales Budget [No schedule of cash collection will be needed as all sales are on cash.] 2. Direct Material Budget(s) [Make a separate budget for each direct material. No schedule of cash disbursements for direct material will be necessary as all purchases will be made in cash.] 3. MOH Budget. 4. Selling and Administrative Expense Budget 5. Cash Budget Note: You will not need any production budget since units sold = units produced every month. Thus, the sales estimates you have formed above will also be used as the number of units produced in the Master Budget. First input your assumptions in the table, and then prepare a fully linked Master Budget making use of cell referencing and automated formulas for calculation.

Depreciation Chart (straight Line Method) Equipment name Cost Useful Life Depreciation expense Grinder $600 5 years $30 Pickle mixing $100 10 years $60 machine Brush $100 10 years $10 Stove $200 10 years $20 Table $350 10 years $35 Dishwasher $350 10 years $35 Total $ 1750 $190/year Therefore, monthly depreciation - 190/12 =$15.8 monthly vate Window Fixed MOH Expense Item Fixed Expense per month $2000 Insurance S30 Depreciation $15.80 Total $2045.8 variable Sn'A Expense Expense Amount Rate Delivery 53000 $3/ unit expense Packaging $1500 $1.5/unit Supplies $500 $0.5/unit Total $5000 $5/unit Fixed S'A Expense Expense Amount Rate Utilities $4000 4 Facebook 52000 1 Advertising Total $6000 5 unit : Total variable cost per unit = Direct Material cost + Variable MOH Rate per unit + variable Sn:A expense per unit= $10 +$0.9 +$5= 15.9 per unit