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Sheet3

conrbution Margain
Labtop Tablet Accessories
sales 1183000 350000 300000
Less closing finished goods 236600
Net sales 946400
Variable cost
Direct Materials 63146.5 60 50
Direct Labor 250000 98000 105000
Variable Manufacturing overhead 23400 9450 11500
Sales Commission 106080 35000 7500
Total Variable Cost Expenses 442626.5 142510 124050
Contribution Margin 503773.5 207490 175950
Fixed cost
Salary for manager 11700 5850 1950
Selling Costs 6000 3000 1000
Equipment Depreciation (90000/10) 375 375
General Expenses 19200 9600 3200
Fixed manufacturing overheads 9000 4500 1500
Total Fixed Cost Expenses 46275 23325 7650
Net Profit 457498.5 184165 168300

Sheet2

Technovate Ltd
Master Budget for the First Quarter
Sales Budget
January February March Quarter April
Budgeted sales per month (units) 100 100 100 300
Selling price per unit SAR 9,100 9,100 9,100 9,100
Total Sales Budget SAR 910,000 910,000 910,000 2,730,000
Expected Cash Collections January February March Quarter
Accounts receivable 31/12/2015 SAR 30,000 30,000
January sales
(50%,50%)x 910000 SAR 455,000 455,000 910,000
February Sales
(50%,50%)x910000 SAR 455,000 455,000 910,000
March Sales
(50%)x910000 SAR 455,000 455,000
Total Cash Collection SAR 485,000 910,000 910,000 2,305,000
The Production Budget January February March Quarter
Sales Budget units 100 100 100 300 100
Add desired ending inventory 20 25 30 30 20
Total Needs in units 120 125 130 330 120
Less Begining Inventory units 30 20 25 30 30
Required Production in units 90 105 105 300 90
The Direct Material Budget January February March Quarter
Production units 90 105 105 300 90
Material per unit 23 23 23 23 23
Production Needs 2070 2415 2415 6900 2070
Add Desired Ending Inventory 362.25 483 517.5 517.5
Total Needs 2432.25 2898 2932.5 7417.5
Less Beginning Inventory 300 362.25 483 300
Material to be Purchased 2132.25 2535.75 2449.5 7117.5
Materials per unit cost SAR 230 230 230 230
Total Cost of Materials to be purchased in SAR 490,417.50 583,222.50 563,385.00 1,637,025.00
Expected Cash Disbursements for Materials
January February March Quarter
Accounts Payable 31/12/2015 SAR 60,000.00 60,000.00
January Purchases
(60%,40%)x SAR 490,417.50 294,250.50 196,167.00 490,417.50
February Purchases
(60%,40%)x SAR 583,222.50 349,933.50 233,289.00 583,222.50
March Purchases
(60%)x SAR 563,385.00 338,031.00 338,031.00
Total Cash Disbursements SAR 354,250.50 546,100.50 571,320.00 1,471,671.00
The Direct Labor Budget
January February March Quarter
Units of Production 90 105 105 300
Direct Labor Per unit 25 25 25 25
Direct Labor hours needed 2250 2625 2625 7500
Direct Labor cost per hour SAR 100 100 100 100
Total Labor Cost SAR 225,000.00 262,500.00 262,500.00 750,000.00
Manufacturing Overhead Budget
January February March Quarter
Budgeted Direct labor hours needed 2250 2625 2625 7500
Variable Manufacturing Overhead Per Unit SAR 234 234 234 234
Variable Manufacturing Overhead Cost SAR 526,500.00 614,250.00 614,250.00 1,755,000.00
Fixed Manufacturing Overhead (60%)x15000 9,000.00 9,000.00 9,000.00 27,000.00
Total Manufacturing Overhead Cost SAR 535,500.00 623,250.00 623,250.00 1,782,000.00
Less non-cash costs 90000/10 =(9000/12)x1/2 375.00 375.00 375.00 1,125.00
Total Manufacturing Overhead costs in SAR 535,125.00 622,875.00 622,875.00 1,780,875.00
Selling and Administrative Budget
January February March Quarter
Budgeted Sales 100 100 100 300
Sales Commission per item sold SAR 1,020 1,020 1,020 1,020
Variable Expenses 102,000 102,000 102,000 306,000
Add Fixed Manager Salary (60%)x19500 SAR 11,700 11,700 11,700 35,100
Add Fixed Selling costs (60%) 10000 SAR 6,000 6,000 6,000 18,000
Cash Selling and Administrative Expenses SAR 119,700 119,700 119,700 359,100
Cash Budget
January February March Quarter
Beginning Cash balance SAR 1,500,000 1,550,925 904,750 1,500,000
Add Cash Collections SAR 485,000 910,000 910,000 2,305,000
Total Cash Available SAR 1,985,000 2,460,925 1,814,750 3,805,000
Less Cash Disbursements
Materials 490,417.50 583,222.50 563,385.00 1,637,027.00
Direct Labor 225,000 262,500 262,500 750,000
Manufacturing Overheads 535,125 622,875 622,875 1,780,875
Selling and Administrative 119,700 119,700 119,700 359,100
Dividend 5,000 5,000
Total Disbursements 1,370,243 1,593,298 1,568,460 4,532,002
Excess(Deficiency) 614,758 867,628 246,290 (727,002)
Financing
Borrowing 5% Bank Loan 800,000 800,000
Investor 1,050,000 1,050,000
Less Interest (5%)x 800,000 (40,000) (40,000)
Total Financing 800,000
Ending Cash Balance 1,414,758 867,628 1,256,290 1,082,998
Ending Finished Goods Inventory Budget
Production costs per unit Quantity Cost SAR Total SAR
Direct Materials 23 230.00 5,290.00
Direct Labor 25 100.00 2,500.00
Manufacturing Overhead 25 237.45 5,936.25
13,726.25
Budgeted Finished Goods Inventory
Ending Inventory in Units 20
Unit Product Cost 13,726.25
Ending Finished Goods Inventory SAR 274,525.00
Technovate Ltd
Budgeted Income Statement
For the Three Months Ended 31/3/2016
Totals SAR
Sales (300 Units @ SAR 9100 2,730,000.00
Less ending finished goods inventory (274,525.00)
Gross Margin 2,455,475.00
Less Selling and Administrative expenses (359,100.00)
Operating Income 2,096,375.00
Less Interest Expense (40,000.00)
Net Income 2,056,375.00