Management Accounting Proj

ONLINE E-COMMERCE SITE FOR GROCERY, FRUITS AND

Group: AC1
Divya Naik
Harshit Pandey
Mandar Bothara

Raviteja Reddy
Varun Subramnian

nting Project

RUITS AND VEGETABLES

Sr No.

Cost Heads

Cost Type

Value (Rs.)

Storage Bins

Fixed/Indirect

100,000.00

Packaging units

Fixed/Indirect

500,000.00

Preservatives

Fixed/Indirect

40,000.00

Depreciation

Fixed/Indirect

328,300.00

Electricity

Fixed/Indirect

15,000.00

Fuel Charges

Variable/Indirect

146,000.00

Incorporation Charges

Fixed/Indirect

25,000.00

Insurance

Fixed/Indirect

100,000.00

Internet

Fixed/Indirect

10,000.00

10

Salaries

Fixed/Indirect

2,520,000.00

11

Maintenance

Fixed/Indirect

5,000.00

12

Rent

Fixed/Indirect

360,000.00

13

Stationery

Variable/Indirect

12,000.00

14

Telephone & Mobile Connection Charges

Variable/Indirect

15,000.00

15

Vehicle Registration

Fixed/Indirect

10,000.00

Total (Rs.)

4,186,300.00

Assumptions
Costs of preservatives have been assumed to be indirect.
No. of employees in each department - Order Processing (2), Warehouse (3), Transportation (4), IT (1), Finance (
Total Fixed Overheads (Rs.)
Total Variable Overheads (Rs.)

4,013,300.00
173,000.00

Ratio

Cost Driver
No. of orders
No. of orders
No. of orders

Refer Next Sheet

Value of Equipment

Refer Next Sheet

No. of light points

Allocated to Transportation
Equal allocation

Refer Next Sheet

Value of Equipment

Refer Next Sheet

No. of office employees

Refer Next Sheet

No. of office employees

Refer Next Sheet

Value of Equipment

Refer Next Sheet

Floor space occupied

Refer Next Sheet

No. of office employees

Value of Cell Phone / Telephone
Allocated to Transportation

, Transportation (4), IT (1), Finance (1), HR (1), Utility (1), Customer Care (1)

Core Departments
Order Processing Cell / Procurement
Warehouse Transportation IT Finance

ty (1), Customer Care (1)

Y
Y
Y
Y

Y
Y

Y
Y

Support Depart

Support Departments
Utility HR & Admin Customer Care

Y
Y

Sr No.

Component

Refrigeration & Cold Storage Units

Fruits Processing Machine

Telephone Hand Sets

FAX Machine (Panasonic)

PC (HCL)

Scanner (Canon)

Printer

Bar Code Printer

Bar Code Reader

10

TATA Ace

11

Mobile Phones

12

Furniture

13

ERP Package

14

Fire Hazard Eqpt

15

Second Hand Bikes

Dept

No. of Employees

Order Processing

Warehouse

Transportation

IT

Finance

Utility

HR & Admin

Customer Care

1
Total

Department

Quantity

WH

WH

WH/OP/IT/CC

OP

OP/WH/TP/IT/FI/HR/UT/CC

10

OP

OP/FI

WH

WH

TP

TP

To be divided equally

Lumpsum

To be divided equally

Lumpsum

WH/OFFC

TP

Value of Equipment (Rs.)

Ratio (Value of Eqpt)

73,885.71

0.052

695,850.00

0.493

457,285.71

0.324

36,385.71

0.026

37,285.71

0.026

39,750.00

0.028

35,285.71

0.025

35,285.71

0.025

1,411,014.29

Price (Rs.)

Total Value (Rs.)

Depreciation (Rs.)

300,000.00

600,000.00

120,000.00

10,000.00

10,000.00

2,000.00

1,100.00

9,400.00

1,466.67

6,500.00

6,500.00

2,166.67

25,000.00

250,000.00

83,333.33

4,000.00

4,000.00

1,333.33

2,000.00

4,000.00

1,333.33

2,000.00

4,000.00

1,333.33

8,000.00

16,000.00

5,333.33

300,000.00

300,000.00

60,000.00

3,000.00

22,000.00

4,000.00

50,000.00

50,000.00

10,000.00

18,000.00

18,000.00

6,000.00

12,500.00

25,000.00

5,000.00

25,000.00

100,000.00

25,000.00

Total Dep./Ins. (Rs.)

328,300.00

Ratio (No. of Employees) Floor Space(sq ft)

Ratio (Floor Space)

0.143

357

0.089

0.214

1500

0.375

0.429

357

0.089

0.107

357

0.089

0.107

357

0.089

0.107

357

0.089

0.107

357

0.089

0.107

357

0.089

Insurance (Rs.)
60,000.00
30,000.00
10,000.00
100,000.00

No. of light points Ratio (Light Points)

4

0.2

0.2

0.1

0.1

0.1

0.1

0.1

0.1

Sr No.

Cost Heads

OP (Rs.)

WH (Rs.)

Storage Bins

100,000.00

Packaging units

500,000.00

Preservatives

40,000.00

Depreciation

Electricity

Fuel Charges

Incorporation Charges

Insurance

Internet

1,428.57

2,142.86

10

Salaries

360,000.00

540,000.00

11

Maintenance

261.82

2,465.78

12

Rent

32,142.86

135,000.00

13

Stationary

1,714.29

1,846.15

14

Telephone & Mobile Connection Charges

15

Vehicle Registration

1,006.10
-

1,006.10
-

419,869.58

1,550,488.96

17,190.95

161,903.08

3,000.00

3,000.00

3,125.00
-

Grand Total (Rs.)

3,125.00
60,000.00

TP (Rs.)

IT (Rs.)

FI (Rs.)

UT (Rs.)

HR (Rs.)

CC (Rs.)

106,396.44

8,465.85

8,675.25

9,248.61

8,209.91

8,209.91

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

1,500.00

146,000.00
3,125.00
40,000.00

3,125.00

3,125.00

3,125.00
-

3,125.00
-

3,125.00
-

4,285.71

1,071.43

1,071.43

1,071.43

1,071.43

1,071.43

1,080,000.00

270,000.00

270,000.00

270,000.00

270,000.00

270,000.00

1,620.41

128.93

132.12

140.86

125.04

125.04

32,142.86

32,142.86

32,142.86

32,142.86

32,142.86

32,142.86

3,692.30

923.08

923.08

923.08

923.08

923.08

10,975.61
10,000.00

1,006.10
-

1,439,738.34

318,363.24

317,569.73

318,151.83

317,097.31

1,006.10
318,103.40

4,999,382.40

CONTRIBUTION MATRIX
Activity Centers
Overhead Items

Processing of Orders

Storage Bins

0%

Packaging units

0%

Preservatives

0%

Depreciation

20%

Electricity

40%

Fuel Charges

0%

Incorporation Charges

33%

Insurance

0%

Internet

100%

Salaries

20%

Maintenance

5%

Rent

40%

Stationery

40%

Telephone & Mobile Connection Charges

40%

Vehicle Registration

0%

Activity

Cost Drivers

Processing of Orders

No. of orders

Storage of Fresh Produce

Sq feet

Transportation to households

No. of orders

DM

35,874,828

DL & Overhead

4,186,383

TOTAL

40,061,211

CONTRIBUTION MATRIX
Activity Centers
Storage of the fresh produce

Transportation of the produce to the households

100%

0%

100%

0%

100%

0%

40%

40%

60%

0%

0%

100%

33%

34%

60%

40%

0%

0%

20%

60%

60%

35%

60%

0%

40%

20%

20%

40%

0%

100%

ACTIVITY COST CALCULATIONS

Activity Centers
Overhead Items

Processing of Orders

Storage Bins

Packaging units

Preservatives

Depreciation

65,660.00

Electricity

6,000.00

Fuel Charges
Incorporation Charges
Insurance

8,332.50
-

Internet

10,000.00

Salaries

504,000.00

Maintenance
Rent

250.00
144,000.00

Stationery

4,800.00

Telephone & Mobile Connection Charges

6,000.00

Vehicle Registration
Grand Total
Rate

749,042.50
52.02

Processing of Orders
Category A

149,808.50

Category B

449,425.50

Category C

149,808.50

Grand Total

749,042.50

CTIVITY COST CALCULATIONS

Activity Centers
Storage of the fresh produce

Transportation of the produce to the households

100,000.00

500,000.00

40,000.00

131,320.00
9,000.00
-

131,320.00
146,000.00

8,250.00

8,500.00

60,000.00

40,000.00

504,000.00

1,512,000.00

3,000.00

1,750.00

216,000.00

4,800.00

2,400.00

3,000.00

6,000.00

10,000.00

1,579,370.00

1,857,970.00

157.94

129.03

Storage of the fresh produce

Transportation of the produce to the households

315,874.00

371,594.00

947,622.00

1,114,782.00

315,874.00

371,594.00

1,579,370.00

1,857,970.00

4,186,382.50

Total Overheads
837,276.50
2,511,829.50
837,276.50

TRADITIONAL COSTING
Category A

Category B

Category C

Total

No. of units sold

2,920.00

8,760.00

2,920.00

SP/unit (Rs.)

2,496.96

4,421.16

8,569.56

Revenues (Rs.)

7,291,123.45

38,729,362.35

25,023,115.45

71,043,601.25

COGS (Rs.)

4,771,280.00

28,627,680.00

19,085,120.00

52,484,080.00

Gross Profit (Rs.)

2,519,843.45

10,101,682.35

5,937,995.45

18,559,521.25

598,042.86

1,196,085.71

2,392,171.43

4,186,300.00

1,921,800.59

8,905,596.64

3,545,824.02

14,373,221.25

672,630.21

3,116,958.82

1,241,038.41

5,030,627.44

1,249,170.39

5,788,637.81

2,304,785.61

9,342,593.81

Expenses (Rs.)
PBT(Rs.)
Taxes @ 35%
PAT (Rs.)

14,600.00
NA

ABC COSTING
Category A

Category B

Category C

No. of units sold

2,920.00

8,760.00

2,920.00

SP/unit (Rs.)

2,496.96

4,421.16

8,569.56

Revenues (Rs.)

7,291,123.45

38,729,362.35

25,023,115.45

COGS (Rs.)

4,771,280.00

28,627,680.00

19,085,120.00

Gross Profit (Rs.)

2,519,843.45

10,101,682.35

5,937,995.45

837,276.50

2,511,829.50

837,276.50

1,682,566.95

7,589,852.85

5,100,718.95

588,898.43

2,656,448.50

1,785,251.63

1,093,668.52

4,933,404.35

3,315,467.32

Overheads (Rs.)
PBT (Rs.)
Taxes @ 35%
PAT (Rs.)

Total
14,600.00
NA
71,043,601.25
52,484,080.00
18,559,521.25
4,186,382.50
14,373,138.75
5,030,598.56
9,342,540.19

Joint Cost

Seperable Cost
For Juice
For
Juice

Fruits

Processing
Processing

For Pack
For
Pack

Split off

Sales Value at Split-off Method

Joint Cost
Joint Cost ( cost of 21 kg of fruit and juice and
processing at split off point)

1,084.00

Beginning Inventory
Production
Sales
Ending Inventory
Selling Price

Juice
4.00
4.00
626.31

Fruit
5.00
5.00
782.89

Panel A: Allocation of Joint Cost using sales value

Sales Value of Total production
Weighting
Joint Cost Allocated
Joint Cost per kg

Juice
626.31
0.44
481.78
120.44

Fruit
782.89
0.56
602.22
120.44

Panel B: Product Line Income Statement

Revenue
Cost of Goods Sold (joint cost)
production cost
deduct ending inventory
COGS
Gross Margin
Gross Margin Percentage

Juice
626.31

Fruit
782.89

481.78
481.78
144.53
23.08%

602.22
602.22
180.67
23.08%

Seperable Cost
Juice Making + Packing

Juice Making +
Packing

Fruit Juice
Fruit
Juice

Packing
Packing

PackedFruits
Fruits
Packed

Physical Measure Method

Joint Cost
Joint Cost ( cost of 21 kg of wheat flour and
processing at split off point)

Total
1,409.20
1,084.00

Total
1,409.20

1,084.00

Beginning Inventory
Production
Sales
Ending Inventory
Selling Price

Juice
4.00
4.00
626.31

Fruit
5.00
5.00
782.89

Panel A: Allocation of Joint Cost using units

Units of Total production
Weighting
Joint Cost Allocated
Joint Cost per kg

Juice
4.00
0.44
481.78
120.44

Fruit
5.00
0.56
602.22
120.44

Panel B: Product Line Income Statement

Revenue
Cost of Goods Sold (joint cost)
production cost
Deduct Ending Inventory
COGS
Gross Margin
Gross Margin Percentage

Juice
626.31

Fruit
782.89

481.78
481.78
144.53
23.08%

602.22
602.22
180.67
23.08%

SP

Total
9.00
1,084.00

Total
1,409.20

1,409.20

PROCESS COSTING

Work in Process, Beginning Inventory

Degree of Completion of beginning work in process
Started during this period
Completed and Transferred out during this period
Work in Process, Ending Inventory
Degree of Completion of ending work in process
Total Cost added during this period
FIFO
Work in Process, Beginning
Started during current period
To account for
Completed and Transferred out during current period
From beginning work in process
(2000*(100%-50%)); (2000*(100%-50%))
Started and Completed
(8000*100%); (8000*100%)
Work in Process, Ending
Accounted for
Work done in current period

Physical Units
60.00
210.00
180.00
90.00

Calculation Eq
Physical Units
60.00
210.00
270.00
60.00
120.00
90.00
270.00

Statement of Cost
Work in Process, Beginning
Cost added in current period
Total cost to account for

Total Production
4,001.76
30,133.73
34,135.49

Cost added in current period

Divide by equivalent units of work done in current period
Cost per equivalent unit for work done in current period

Statement of Evaluation
Work in Process, Beginning
Cost added to beginning work in process in current period
Total from beginning Inventory
Started and Completed
Total Cost of units completed and transferred out
Work in Process, Ending
Total Cost accounted for

Total Production
4,001.76
4,614.69
8,616.45
18,458.75
27,075.20
7,060.29
34,135.49

Process Account
Units
To Opening WIP
To Material
To Labour and Overhead

60.00
210.00

270.00
Sales/month

PROCESS COSTING
Direct Materials
3,600.00
0.50

0.50
27,000.00

Labour and Overhead Total Cost

401.76
4,001.76
0.50

0.60
3,133.73

30,133.73

Calculation Equivalent Units

Direct Materials
Labour and Overhead

30.00

30.00

120.00

120.00

45.00

54.00

195.00

204.00

Direct Material
3,600.00
27,000.00
30,600.00

Labour and Overhead

401.76
3,133.73
3,535.49

27,000.00
195.00
138.46

3,133.73
204.00
15.36

Direct Material
3,600.00
4,153.85
7,753.85
16,615.38
24,369.23
6,230.77
30,600.00

Labour and Overhead

401.76
460.84
862.60
1,843.37
2,705.97
829.52
3,535.49

Total Cost
4,001.76
27,000.00
3,133.73

By Finished stock
By Closing Stock

Units
180.00
90.00

Total Cost
27,075.20
7,060.29

34,135.49
44,376.13

270.00

34,135.49

Department
IT
FI
UT
HR
CC

OP
20.68%
25.00%
4.00%
16.67%
30.00%

WH
20.68%
25.00%
40.00%
16.67%
30.00%

Department
Costs

OP
420,130.44

WH
1,367,699.72

Order Processing
Warehouse
Transport
It support
Finance
Utility
HR and Admin
Customer care

Benefits Received
TP
IT
3.44%
0.00%
25.00%
6.25%
40.00%
4.00%
33.34%
8.34%
30.00%
2.50%
TP
1,078,647.75

IT
228,070.45

FI
6.89%
0.00%
4.00%
8.34%
2.50%
FI
227,277.17

UT
20.68%
6.25%
0.00%
8.34%
2.50%

HR
6.89%
6.25%
4.00%
0.00%
2.50%

CC
20.68%
6.25%
4.00%
8.34%
0.00%

UT
227,859.91

HR
226,804.23

CC
227,810.33

Total
4,004,300.00

IT
FI
UT
HR
CC

IT
FI
UT
HR
CC

44.80%
75.00%
84.00%
66.68%
90.00%

228,070.45
227,277.17
227,859.91
226,804.23
227,810.33

228,070.45
227,277.17
227,859.91
226,804.23
227,810.33

OP
20.68%
25.00%
4.35%
22.22%
33.33%

OP
46.16%
33.33%
4.76%
25.00%
33.33%

DIRECT METHOD
WH
46.16%
33.33%
47.62%
25.00%
33.33%

STEP DOWN METHOD

WH
TP
20.68%
3.44%
25.00% 25.00%
43.48% 43.48%
22.22% 44.44%
33.33% 33.33%

DIRECT METHOD
TP
7.68%
33.33%
47.62%
50.00%
33.33%

OP
105,278.95
75,759.06
10,850.47
56,701.06
75,936.78

WH
105,278.95
75,759.06
108,504.72
56,701.06
75,936.78

TP
17,512.55
75,759.06
108,504.72
113,402.12
75,936.78

FI
6.89%
0.00%
0.00%
0.00%
0.00%

UT
20.68%
8.33%
0.00%
0.00%
0.00%

HR
6.89%
8.33%
4.35%
0.00%
0.00%

N METHOD
IT
0.00%
0.00%
0.00%
0.00%
0.00%

CC
20.68%
8.33%
4.35%
11.11%
0.00%

OP
47,164.97
56,819.29
9,906.95
50,400.94
75,936.78

WH
47,164.97
56,819.29
99,069.53
50,400.94
75,936.78

TP
7,845.62
56,819.29
99,069.53
100,801.88
75,936.78

IT
-

FI
15,714.05
-

UT
47,164.97
18,939.76
-

HR
15,714.05
18,939.76
9,906.95
-

CC
47,164.97
18,939.76
9,906.95
25,200.47
-

Sr No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14

Cost Heads
Storage Bins
Packaging units
Preservatives
Depreciation
Electricity
Incorporation Charges
Insurance
Internet
Salaries
Maintenance
Rent
Stationery
Telephone & Mobile Connection Charges
Delivery Charges (outsourced)

Total Fixed Overheads (Rs.)

Total Variable Overheads (Rs.)

No. of units sold

Sales Revenues (Rs.)
Direct Material (Rs.)
Variable Overheads (Rs.)
Contribution Margin (Rs.)
Contribution Margin/Unit (Rs.)
Fixed Overheads (Rs.)
Operating Income (Rs.)
Breakeven Quantity

Cost Type
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Fixed/Indirect
Variable/Indirect
Variable/Indirect
Fixed/Indirect
Total (Rs.)

Value (Rs.)
100,000.00
500,000.00
40,000.00
301,300.00
15,000.00
25,000.00
90,000.00
10,000.00
2,340,000.00
5,000.00
360,000.00
12,000.00
15,000.00
146,000.00
3,959,300.00

3,932,300.00
27,000.00

Delivery Outsourced
Category A
Category B
2,920
8,760
4,715,881
28,295,288
3,261,348
19,568,088
2,454.55
14,727.27
1,452,079
8,712,473
497.29
994.57
357,481.82
2,144,890.91
1,094,597
6,567,582
719
2,157

Assuming that:
A total of 40 units of pur products will be sold / day.
20%, 60%, 20% of total is the respective selling of category A, B and C.

Category C
2,920
18,863,526
13,045,392
9,818.18
5,808,315
1,989.15
1,429,927.27
4,378,388
719

Total
14,600
51,874,695
35,874,828
27,000
15,972,867
3,481.01
3,932,300
12,040,567
1,130

No. of units sold

Sales Revenues (Rs.)
Direct Material (Rs.)
Variable Overheads (Rs.)
Contribution Margin (Rs.)
Contribution Margin/Unit (Rs.)
Fixed Overheads (Rs.)
Operating Income (Rs.)
Breakeven Quantity
Difference in operating income
45,000

Delivery done by Company

Category A
2,920.00
4,715,881.00
3,261,348.00
15,727.00
1,438,806.00
492.00
348,300.00
1,090,506.00
707.93

very done by Company

Category B
8,760.00
28,295,288.00
19,568,088.00
94,363.00
8,632,836.00
985.00
2,089,800.00
6,543,036.00
2,121.62

Category C
2,920.00
18,863,525.00
13,045,392.00
62,909.00
5,755,224.00
1,970.00
1,393,200.00
4,362,024.00
707.21

Total
14,600.00
51,874,695.00
35,874,828.00
173,000.00
15,826,867.00
3,449.00
3,831,300.00
11,995,567.00
1,110.84

Sr No.

Product

Rice

Daily Wholesale prices per kg

Category A (1 kg packs)
(Rs.)
49.00
49.00

Atta

33.00

33.00

Toor Dal

94.00

94.00

Moong Dal

109.00

109.00

Masoor Dal (Red)

100.00

100.00

Sugar

50.00

50.00

Milk

56.00

56.00

Mustard Oil

131.00

131.00

Tea (Taj Mahal)

490.00

490.00

10

Salt (Iodised)

17.00

17.00

11

Potato

40.00

40.00

12

Onion

31.00

31.00

13

Tomato

32.00

32.00

14

Capsicum

34.00

34.00

15

Ladies Finger

56.00

56.00

16

Spinach

70.00

70.00

17

Cabbage

30.00

30.00

18

Banana

49.00

49.00

19

Orange

43.00

43.00

20

Apple

120.00
Cost of each Category (Direct
Mtl.)

120.00

Overhead Costs per Unit

1,634.00
286.74

Total Costs per unit

1,920.74

Selling Price of each Catgeory

2,496.96

Category B (2 kg packs) Category C (4 kg packs)

98.00

196.00

66.00

132.00

188.00

376.00

218.00

436.00

200.00

400.00

100.00

200.00

112.00

224.00

262.00

524.00

980.00

1,960.00

34.00

68.00

80.00

160.00

62.00

124.00

64.00

128.00

68.00

136.00

112.00

224.00

140.00

280.00

60.00

120.00

98.00

196.00

86.00

172.00

240.00

480.00

3,268.00

6,536.00

286.74

286.74

3,554.74

6,822.74

4,421.16

8,569.56

Total
11,438.00

Category A

Category B

Category C

Total

2,920.00

8,760.00

2,920.00

14,600.00

Sales Revenues (Rs.)

7,291,123.45

38,729,362.35

25,023,115.45

71,043,601.25

Direct Material (Rs.)

4,771,280.00

28,627,680.00

19,085,120.00

52,484,080.00

Variable Overheads (Rs.)

15,727.27

94,363.64

62,909.09

173,000.00

Contribution Margin (Rs.)

2,504,116.18

10,007,318.71

5,875,086.36

18,386,521.25

857.57

1,142.39

2,012.02

4,011.98

Fixed Overheads (Rs.)

364,845.45

2,189,072.73

1,459,381.82

4,013,300.00

Break Even Quantities

425.44

1,916.23

725.33

3,067.00

No. of units sold

Contribution Margin/Unit (Rs.)

Assuming that:
A total of 40 units of pur products will be sold / day.
20%, 60%, 20% of total is the respective selling of category A, B and C.
Costs of each commodity is taken as per standard cost available in the city

Total No. of units sold

1000

Sales Revenues Total Variable Costs Total Fixed Costs

(Rs.)
(Rs.)
(Rs.)
4,866,000
3,606,649
4,013,300

2000

9,732,000

7,213,299

4,013,300

3000

14,598,000

10,819,948

4,013,300

4000

19,464,000

14,426,597

4,013,300

5000

24,330,000

18,033,247

4,013,300

6000

29,196,001

21,639,896

4,013,300

7000

34,062,001

25,246,545

4,013,300

8000

38,928,001

28,853,195

4,013,300

9000

43,794,001

32,459,844

4,013,300

10000

48,660,001

36,066,493

4,013,300

11000

53,526,001

39,673,142

4,013,300

12000

58,392,001

43,279,792

4,013,300

13000

63,258,001

46,886,441

4,013,300

14000

68,124,001

50,493,090

4,013,300

15000

72,990,001

54,099,740

4,013,300

Variable O/H per unit

of A sold (Rs.)

5.39

Variable O/H per unit

of B sold (Rs.)

10.77

Variable O/H per unit

of C sold (Rs.)

21.54

Total Costs
(Rs.)
7,619,949

Variation of Revenues and Cost

80,000,000

11,226,599
70,000,000

14,833,248
18,439,897

60,000,000

25,653,196
29,259,845
32,866,495
36,473,144
40,079,793
43,686,442
47,293,092
50,899,741

Revenues/Costs

22,046,547

50,000,000
40,000,000
30,000,000

BEP

20,000,000
10,000,000

54,506,390
58,113,040

No. Of Units Sold

venues and Costs

o. Of Units Sold

Total Variable Costs

Total Fixed Costs
Total Costs
Total Revenues

Variable Costing
Revenue
VARIABLE COGS
Beginning Inventory
(+) Variable Manufacturing Cost
(+) Cost of Goods Available for sale
(-)Ending Inventory
Variable COGS
(+)Variable Non- Manufacturing Cost
Total Variable Cost
Contribution Margin
(-)Fixed Manufacturing Cost
(-)Fixed Non-Manufacturing Cost
Operating Income

532,513.61
409,625.86
409,625.86
409,625.86
22,490.00
432,115.86
100,397.76
12,000.00
66,950.00
21,447.76

Absorption Costing
Revenue
COGS
Beginning Inventory
(+)Variable manufacturing costs
(+)Fixed manufacturing costs
Cost of Goods Available for sale
(-)Ending inventory
COGS
Gross Margin
(-)Variable non manufacturing costs
(-)Fixed non manufacturing costs
Operating Income

532,513.61
409,625.86
12,000.00
421,625.86
421,625.86
110,887.76
22,490.00
66,950.00
21,447.76

Throughput Costing
Revenue
DIRECT MATERIAL COGS
Beginning Inventory
(+)Direct Material
Cost of Goods Available for sale
(-)Closing inventory
COGS (DM)
Throughput contribution
(-)Manufacturing costs (other than DM)
(-)Non manufacturing costs
Operating Income

532,513.61
367,200.00
367,200.00
367,200.00
165,313.61
54,425.86
89,440.00
21,447.76

Months Sales
Purchases Labour
December
35000
23800
1556
January
42000
28560
1867
February
48000
32640
2133
March
55000
37400
2444
30,600.00
30,600.00

OH IT
233
280
320
367

OH FI
233
280
320
367

300.00

300.00

2000
3,535.49

A
B

OH UT
233
280
320
367
300.00

OH HR
233
280
320
367
300.00

CASH BUDGET
DECEMBER
JANUARY
Balance b/d
10,000
22,550
Receipts
Cash sales
29,750
35,700
Debtors
5,000
5,250
TOTAL B
34,750
40,950
Payments
Creditors
20,000
23,800
Wages
1,200
1,556
IT OH
200
233
FI OH
200
233
UT OH
200
233
HR OH
200
233
CC OH
200
233
TOTAL C
22,200
26,522
Balance
(A+B-C)
22,550
36,978

OH CC
233
280
320
367
300.00

DGET
FEBRUARY
36,978

MARCH
52,251

40,800
6,300
47,100

46,750
7,200
53,950

28,560
1,867
280
280
280
280
280
31,827

32,640
2,133
320
320
320
320
320
36,373

52,251

69,828