Pick a business you would like to have of your own which is already operating for a couple of year or at least a year.: to have some history to compare to. Everything is imaginary like in a movie a pretend business. What the project has to include: I have chosen a pie shop, name: Chocolate Cream Pies What are the: direct materials - list the item with amounts? direct labor -hours to produce the item choose to manufacture or create manufacture overhead items like: utilities, salaries, rent, depreciation. other expenses like -administrative, advertising, selling and administrative expenses Create a Master Budget-How much cash you will need for the new coming year of business or quarter (3 months) of business? Production budget -how much raw material you will need Sale Budget-how much you have to price your product in order to cover your direct cost the variable cost. How much to expected cash collection from your product? Breakeven Point-it is a must in the project -how much you have to produce deliver to breakeven (your revenue=expenses) Direct Material Yearly sales Cost per pie Items: Milk (kg) Sugar (kg) Chocolate (kg) Pie Dish (units) Per unit req. (Kg) Price (PKR) Total cost (PKR) 0.25 60 15 0.025 50 1.25 0.01 1001 1 2.75 2.75 Per day sales Per month sales Per Quarter sales Per year sales Chocolate Cream Pies Schedule of Expected Cash Collection For the Year Ended December, 2021 quantity Price (PKR) Total sales (PKR) 100 25 2,500 Accounts Receivable (10%) PKR 125,000 PKR 125,000 First quarter sales (90%, 10%) 1.175.000 PKR 125,000 1.250,000 3,000 75,000 Second Quarter sales (90%, 10%) 1125.000 PKR 125 000 1.250.000 Third Quarter sales(90%, 10%) 1.125.000 1.125,000 50,000 1,250,000 Total Cash Collections PKR 1,250,000 PKR 1.250.000 PKR 1,250,000 PKR 3,750,000 150,000 3,750,000 Total 20 Chocolate Cream Pies Production Budget For the year Ended December 31, 2021 Direct Labor per pie Chocolate Cream Pies Sales Budget For the Year Ended December, 2021 Quarter 1 Quarter 2 Quarter 3 Total 50,000 50,000 50,000 150,000 25 25 25 25 PKR 1,250,000 PKR 1,250,000 PKR 1,250,000 PKR 3,750,000 Budgeted Sales in units Selling Price per unit (PKR) Budgeted Sales in units Add: desired ending inventory Total need less: beginning inventory 50,000 6250 56250 6250 50.000 6250 56250 6250 50,000 6250 56250 6250 150,000 6250 156,250 6250 Total Sales 100 2.5 2.5 Required units to produce 50,000 50,000 50,000 150,000 Required production of pies Direct Labor hours per 100 pies Total Direct Labor Hours Needed Direct Labor Cost per hour (PKR) Total labor needed to meet production Total Direct Labor Hours Cost per day (PKR) Direct Labor Cost per ice cream (PKR) percentage of sales collected in each quarter percentage of sales collected in next quarter Required in ending |45% of next quarter 150 3 450 4.5 I am at a complete loss and do not know if what I have done makes any sense and I am stuck attempting to create the Direct Material Budget. Pick a business you would like to have of your own which is already operating for a couple of year or at least a year.: to have some history to compare to. Everything is imaginary like in a movie a pretend business. What the project has to include: I have chosen a pie shop, name: Chocolate Cream Pies What are the: direct materials - list the item with amounts? direct labor -hours to produce the item choose to manufacture or create manufacture overhead items like: utilities, salaries, rent, depreciation. other expenses like -administrative, advertising, selling and administrative expenses Create a Master Budget-How much cash you will need for the new coming year of business or quarter (3 months) of business? Production budget -how much raw material you will need Sale Budget-how much you have to price your product in order to cover your direct cost the variable cost. How much to expected cash collection from your product? Breakeven Point-it is a must in the project -how much you have to produce deliver to breakeven (your revenue=expenses) Direct Material Yearly sales Cost per pie Items: Milk (kg) Sugar (kg) Chocolate (kg) Pie Dish (units) Per unit req. (Kg) Price (PKR) Total cost (PKR) 0.25 60 15 0.025 50 1.25 0.01 1001 1 2.75 2.75 Per day sales Per month sales Per Quarter sales Per year sales Chocolate Cream Pies Schedule of Expected Cash Collection For the Year Ended December, 2021 quantity Price (PKR) Total sales (PKR) 100 25 2,500 Accounts Receivable (10%) PKR 125,000 PKR 125,000 First quarter sales (90%, 10%) 1.175.000 PKR 125,000 1.250,000 3,000 75,000 Second Quarter sales (90%, 10%) 1125.000 PKR 125 000 1.250.000 Third Quarter sales(90%, 10%) 1.125.000 1.125,000 50,000 1,250,000 Total Cash Collections PKR 1,250,000 PKR 1.250.000 PKR 1,250,000 PKR 3,750,000 150,000 3,750,000 Total 20 Chocolate Cream Pies Production Budget For the year Ended December 31, 2021 Direct Labor per pie Chocolate Cream Pies Sales Budget For the Year Ended December, 2021 Quarter 1 Quarter 2 Quarter 3 Total 50,000 50,000 50,000 150,000 25 25 25 25 PKR 1,250,000 PKR 1,250,000 PKR 1,250,000 PKR 3,750,000 Budgeted Sales in units Selling Price per unit (PKR) Budgeted Sales in units Add: desired ending inventory Total need less: beginning inventory 50,000 6250 56250 6250 50.000 6250 56250 6250 50,000 6250 56250 6250 150,000 6250 156,250 6250 Total Sales 100 2.5 2.5 Required units to produce 50,000 50,000 50,000 150,000 Required production of pies Direct Labor hours per 100 pies Total Direct Labor Hours Needed Direct Labor Cost per hour (PKR) Total labor needed to meet production Total Direct Labor Hours Cost per day (PKR) Direct Labor Cost per ice cream (PKR) percentage of sales collected in each quarter percentage of sales collected in next quarter Required in ending |45% of next quarter 150 3 450 4.5 I am at a complete loss and do not know if what I have done makes any sense and I am stuck attempting to create the Direct Material Budget