Make a master budget for the year

Assignment Help Managerial Accounting

Reference no: EM132637395

You have a bhelpuristallinoperation at BashundharaR/Asince 2015.Information of yourbusiness in 2018 are as follows:

Selling price was BDT 20 per plate

Average Sales volume was 70 plates per day

Annual sales growth was5%

Price increasesby 15% every year

Monthly average selling and administration cost of the stall was:

Grease payment= BDT 500/month

Rent

= BDT 1,200/month

Utility

= BDT 200/month

Depreciation

= BDT 50/month

During a normal situation,the following growth has been observed:

Raw material cost increases by 5% every year

Labor cost increases by 3% every year

MOH cost increases by 7% every year

Selling and administration cost increases by 2% every year

Question 1: Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget)for the year 2019 (Pre-CORONA virus year) and another Master Budget for the year 2020 (CORONA virus year). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and opening/closing inventory. Show details/breakdown of your calculation.

Question 2: Give reasons of any changes of yourassumptions between 2019 and 2020 Master Budget i.e., pre COVID 19 situation and during COVID 19 situation. Also keep in mind that due to COVID 19 situation, the growth rate may be different than what has been observed during the normal scenario

Reference no: EM132637395

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