2018 2019 2020 2021

Sales Price 6 6.9 7.94 9.13

Average Sales Volume (Per Day) 30 33 36.30 39.93

Annual Sales Growth 10%

Annual Price Increase 15%

Selling and Administration Cost 2018 2019 2020

Area Commision 500 520 540.8
Rent 1000 1040 1081.6
Utility 200 208 216.32
Depreciation 60 62.4 64.896

Cost Increment
Raw Material 10%
Labor Cost 8%
MOH Cost 12%
Selling and Administration 4%
 Sales Budget
2019
1. It is assumed that 80% of Total Sales will be collected in the month the sale is made rest 20% in the next month
2020
1. Covid Pandemic will impact the sales of Tea Shop from March to June due to lockdown the sales per day in differ
Jan Feb Mar
Sales Per Day 36 36 27

Production Budget
1. As Tea is made and served instantly so it is assumed that there will be no beginning and ending finished goods.

Direct Material Budget

Price (2018) 2019 2020
Tea Leaf ( Ispahani 400 Gram) 175 193 212
Sugar (Pran 1 KG) 61 67 74
Condensed Milk ( Danish 397 Gram) 50 55 61
Price Per Gram
Tea Leaf 0.438 0.481 0.529
Sugar 0.061 0.067 0.074
Condensed Milk 0.126 0.139 0.152

1 Cup Tea Need Amount ( In Gram)

Tea Leaf 2
Sugar 2
Condensed Milk 3

Cost Per Cup 2018 2019 2020

Tea Leaf 0.88 0.96 1.06
Sugur 0.12 0.13 0.15
Condensed Milk 0.38 0.42 0.46
Raw Material Per Cup 1.37 1.51 1.66

1. It is assumed Tea stall will keep a inventory of 10% of the Raw Material needed in next month.

Direct Labor Budget

2018 2019 2020
Minimum Wage Per Month ( 8 hour Per Day) 6900 7452 8048
Per Hour Salary 36 39 42
Per Minute Salary 0.60 0.65 0.70
Time Required to make a Tea (In Minute) 2 2 2
 Manufacturing Overhead Cost
2018 2019 2020
Price of Kerosine 52 58.24 65.2288
Burning Period ( In Minutes) 480 480 480
Per Minute Cost 0.11 0.12 0.14

Price of Stove 1913

Estimated Life ( Year) 5
Depreciation Per Year 382.6
Depreciation Per Month 31.9

Ending Finished Good Inventory

1. As Tea is made and served instantly so it is assumed that there will be no beginning and ending finished goods.

Selling and Administrative Budget

1. Tea Shop generally doesn't have to bear any variable selling and administrative cost

Cash Budget
1. It is assumed that Tea shop had 2000 as cash in the beginning of the year 2019.
2. Second assumption is, I will withdraw 2000 each month from the business unless the cash balance is negetive.
 Sales Budget

rest 20% in the next month

wn the sales per day in different month will look like

Apr May Jun Jul Aug Sep Oct Nov Dec
18 18 18 22 25 29 33 36 36

and ending finished goods.

and ending finished goods.

e cash balance is negetive.

 SALE
Jan Feb
Budgeted Unit Sales 1023 924
Sales Price Per Unit 6.9 6.9
Total Sales 7059 6376

Schedule of Exp
Beginning Balance 1080
Jan 5647 1412
Feb 5100
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total Cash Collection 6727 6512

Produ
Jan Feb
Budgeted Unit Sales 1023 924
Desired Inventory at the End of the Year 0 0
Total Needs 1023 924
Units of Beginning Good Inventory 0 0
Required Production In Unit 1023 924

Direct M
Jan Feb
Required Production 1023 924
Unit of Raw Material Needed Per Cup ( In Gram)
Tea Leaf 2 2
Sugar 2 2
Condensed Milk 3 3
Unit of Raw Material Needed to Meet Production ( In Gram)
Tea Leaf 2046 1848
Sugar 2046 1848
Condensed Milk 3069 2772
Desired Ending Inventory ( In Gram)
 Tea Leaf 184.8 204.6
Sugar 184.8 204.6
Condensed Milk 277.2 306.9
Begining Inventory ( In Gram)
Tea Leaf 204.6 184.8
Sugar 204.6 184.8
Condensed Milk 306.9 277.2
Unit of Raw Material need to be Purchased
Tea Leaf 2026.2 1867.8
Sugar 2026.2 1867.8
Condensed Milk 3039.3 2801.7
Cost of Raw Material need to be Purchased (Per Gram)
Tea Leaf 0.48 0.48
Sugar 0.07 0.07
Condensed Milk 0.14 0.14
Cost of Raw Material need to be Purchased
Tea Leaf 975 899
Sugar 136 125
Condensed Milk 421 388
Total Raw Material Cost 1532 1412
Schedule of Exp
Jan Feb
Jan 1532
Feb 1412
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total Cash Disbursement 1532 1412

Direct
Jan Feb
Required Production 1023 924
Direct Labor Minute per Tea 2 2
Total Direct Labor Minute Needed 2046 1848
Direct Labor Cost Per Minute 0.65 0.65
Total Direct Labor Cost 1324 1195
 Manufactur
Jan Feb
Budgeted Direct Labor Minute 2046 1848
Variable Manufacturing Overhead Per Minute 0.12 0.12
Variable Manufacturing Overhead 248.25 224.22
Fixed Manufacturing Overhead 31.88 31.88
Total Manufacturing Overhead 280.13 256.11
Depreciation 31.88 31.88
Cash Disbursement in Manufacturing Overhead 248.25 224.22

Total Manufacturing Overhead

Budgeted Direct Labor Minute
Pre-Determined Overhead Rate for the year

Ending Finished Good Inventory Budget

Item Quantity Cost
Direct Material
Tea Leaf 2 0.48
Sugar 2 0.07
Condensed Milk 3 0.14
Direct Labor 2 0.65
Manufacturing Overhead 2 0.14
Unit Production Cost

Budgeted Finished Good Inventory

Unit Product Cost
Ending Inventory ( In Taka)

Selling and Admin

Jan Feb
Variable Selling and Administrative Expense 0 0
Fixed Selling and Administrative Expense
Area Commision 520 520
Rent 1040 1040
Utility 208 208
Depreciation 62.4 62.4
Total Fixed Selling and Administrative Expense 1830.4 1830.4
Total Selling and Administrative Expense 1830.4 1830.4
Depreciation 62.4 62.4
Cash Disbursement for Selling and Administrative Expense 1768 1768
 Cas
Jan Feb
Beginning Cash Balance 2000 1855
Cash Receipts
Collection from Sales 6727 6512
Total Cash Available 8727 8367
Cash Disbursement
Direct Material 1532 1412
Direct Labor 1324 1195
Manufacturing Overhead 248 224
Selling and Administrative Expense 1768 1768
Withdrawal 2000 2000
Total Cash Disbursement 6872 6600
Excess (Deficiency) of Cash Available dor Disbursement 1855 1767

Financing 0 0
Ending Cash Balance 1855 1767
 SALES BUDGET
Mar Apr May Jun Jul Aug Sep Oct
1023 990 1023 990 1023 1023 990 1023
6.9 6.9 6.9 6.9 6.9 6.9 6.9 6.9
7059 6831 7059 6831 7059 7059 6831 7059

Schedule of Expected Cash Collection

1275
5647 1412
5465 1366
5647 1412
5465 1366
5647 1412
5647 1412
5465 1366
5647

6922 6877 7013 6877 7013 7059 6877 7013

Production Budget
Mar Apr May Jun Jul Aug Sep Oct
1023 990 1023 990 1023 1023 990 1023
0 0 0 0 0 0 0 0
1023 990 1023 990 1023 1023 990 1023
0 0 0 0 0 0 0 0
1023 990 1023 990 1023 1023 990 1023

Direct Material Budget

Mar Apr May Jun Jul Aug Sep Oct
1023 990 1023 990 1023 1023 990 1023

2 2 2 2 2 2 2 2
2 2 2 2 2 2 2 2
3 3 3 3 3 3 3 3

2046 1980 2046 1980 2046 2046 1980 2046

2046 1980 2046 1980 2046 2046 1980 2046
3069 2970 3069 2970 3069 3069 2970 3069
 198 204.6 198 204.6 204.6 198 204.6 198
198 204.6 198 204.6 204.6 198 204.6 198
297 306.9 297 306.9 306.9 297 306.9 297

204.6 198 204.6 198 204.6 204.6 198 204.6

204.6 198 204.6 198 204.6 204.6 198 204.6
306.9 297 306.9 297 306.9 306.9 297 306.9

2039.4 1986.6 2039.4 1986.6 2046 2039.4 1986.6 2039.4

2039.4 1986.6 2039.4 1986.6 2046 2039.4 1986.6 2039.4
3059.1 2979.9 3059.1 2979.9 3069 3059.1 2979.9 3059.1

0.48 0.48 0.48 0.48 0.48 0.48 0.48 0.48

0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07
0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14

981 956 981 956 985 981 956 981

137 133 137 133 137 137 133 137
424 413 424 413 425 424 413 424
1542 1502 1542 1502 1547 1542 1502 1542
Schedule of Expected Cash Disbursion
Mar Apr May Jun Jul Aug Sep Oct

1542
1502
1542
1502
1547
1542
1502
1542

1542 1502 1542 1502 1547 1542 1502 1542

Direct Labor Budget

Mar Apr May Jun Jul Aug Sep Oct
1023 990 1023 990 1023 1023 990 1023
2 2 2 2 2 2 2 2
2046 1980 2046 1980 2046 2046 1980 2046
0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65
1324 1281 1324 1281 1324 1324 1281 1324
 Manufacturing Overhead Cost
Mar Apr May Jun Jul Aug Sep Oct
2046 1980 2046 1980 2046 2046 1980 2046
0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.12
248.25 240.24 248.25 240.24 248.25 248.25 240.24 248.25
31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88
280.13 272.12 280.13 272.12 280.13 280.13 272.12 280.13
31.88 31.88 31.88 31.88 31.88 31.88 31.88 31.88
248.25 240.24 248.25 240.24 248.25 248.25 240.24 248.25

Total
1.51
0.96
0.13
0.42
1.29
0.27
3.08

0
3.08
0

Selling and Administrative Expense Budget

Mar Apr May Jun Jul Aug Sep Oct
0 0 0 0 0 0 0 0

520 520 520 520 520 520 520 520

1040 1040 1040 1040 1040 1040 1040 1040
208 208 208 208 208 208 208 208
62.4 62.4 62.4 62.4 62.4 62.4 62.4 62.4
1830.4 1830.4 1830.4 1830.4 1830.4 1830.4 1830.4 1830.4
1830.4 1830.4 1830.4 1830.4 1830.4 1830.4 1830.4 1830.4
62.4 62.4 62.4 62.4 62.4 62.4 62.4 62.4
1768 1768 1768 1768 1768 1768 1768 1768
 Cash Budget
Mar Apr May Jun Jul Aug Sep Oct
1767 1808 1893 2024 2109 2236 2413 2498

6922 6877 7013 6877 7013 7059 6877 7013

8689 8684 8906 8901 9123 9294 9289 9511

1542 1502 1542 1502 1547 1542 1502 1542

1324 1281 1324 1281 1324 1324 1281 1324
248 240 248 240 248 248 240 248
1768 1768 1768 1768 1768 1768 1768 1768
2000 2000 2000 2000 2000 2000 2000 2000
6882 6791 6882 6791 6887 6882 6791 6882
1808 1893 2024 2109 2236 2413 2498 2629

0 0 0 0 0 0 0 0
1808 1893 2024 2109 2236 2413 2498 2629
Nov Dec Total
990 1023 12045
6.9 6.9 6.9
6831 7059 83111

1080
7059
6376
7059
6831
7059
6831
7059
7059
6831
1412 7059
5465 1366 6831
5647 5647
6877 7013 82779

Nov Dec Total

990 1023 12045
0 0 0
990 1023 12045
0 0 0
990 1023 12045

Nov Dec Total

990 1023 12045

2 2 2
2 2 2
3 3 3

1980 2046 24090

1980 2046 24090
2970 3069 36135
 204.6 225.06 225.06
204.6 225.06 225.06
306.9 337.59 337.59

198 204.6 204.6

198 204.6 204.6
297 306.9 306.9

1986.6 2066.46 24110.46

1986.6 2066.46 24110.46
2979.9 3099.69 36165.69

0.48 0.48 0.48

0.07 0.07 0.07
0.14 0.14 0.14

956 994 11603

133 139 1618
413 429 5010
1502 1563 18231

Nov Dec Total

1532
1412
1542
1502
1542
1502
1547
1542
1502
1542
1502 1502
1563 1563
1502 1563 18231

Nov Dec Total

990 1023 12045
2 2 2
1980 2046 24090
0.65 0.65 0.65
1281 1324 15583
Nov Dec Total
1980 2046 24090
0.12 0.12 0.12
240.24 248.25 2922.92
31.88 31.88 382.60
272.12 280.13 3305.52
31.88 31.88 382.60
240.24 248.25 2922.92

3305.52
24090
0.14

Nov Dec Total

0 0 0

520 520 6240

1040 1040 12480
208 208 2496
62.4 62.4 748.8
1830.4 1830.4 21964.8
1830.4 1830.4 21964.8
62.4 62.4 748.8
1768 1768 21216
Nov Dec Total
2629 2714 2000

6877 7013 82779

9506 9728 84779

1502 1563 18231

1281 1324 15583
240 248 2923
1768 1768 21216
2000 2000 24000
6791 6902 81953
2714 2825 2825

0 0 0
2714 2825 2825
 SALES BUDG
Jan Feb Mar
Budgeted Unit Sales 1125 1053 844
Sales Price Per Unit 7.935 7.935 7.935
Total Sales 8929 8353 6697

Schedule of Expected Ca
Beginning Balance 1412
Jan 7143 1786
Feb 6683 1671
Mar 5358
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total Cash Collection 8555 8468 7028

Production Bud
Jan Feb Mar
Budgeted Unit Sales 1125 1053 844
Desired Inventory at the End of the Year 0 0 0
Total Needs 1125 1053 844
Units of Beginning Good Inventory 0 0 0
Required Production In Unit 1125 1053 844

Direct Material B
Jan Feb Mar
Required Production 1125 1053 844
Unit of Raw Material Needed Per Cup ( In Gram)
Tea Leaf 2 2 2
Sugar 2 2 2
Condensed Milk 3 3 3
Unit of Raw Material Needed to Meet Production ( In Gram)
Tea Leaf 2251 2105 1688
Sugar 2251 2105 1688
Condensed Milk 3376 3158 2532
Desired Ending Inventory ( In Gram)
 Tea Leaf 211 169 109
Sugar 211 169 109
Condensed Milk 316 253 163
Begining Inventory ( In Gram)
Tea Leaf 225 211 169
Sugar 225 211 169
Condensed Milk 338 316 253
Unit of Raw Material need to be Purchased
Tea Leaf 2236 2064 1628
Sugar 2236 2064 1628
Condensed Milk 3354 3095 2442
Cost of Raw Material need to be Purchased (Per Gram)
Tea Leaf 0.53 0.53 0.53
Sugar 0.07 0.07 0.07
Condensed Milk 0.15 0.15 0.15
Cost of Raw Material need to be Purchased
Tea Leaf 1184 1092 862
Sugar 165 152 120
Condensed Milk 511 472 372
Total Raw Material Cost 1860 1716 1354
Schedule of Expected Ca
Jan Feb Mar
Jan 1860
Feb 1716
Mar 1354
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Total Cash Disbursement 1860 1716 1354

Direct Labor Bu
Jan Feb Mar
Required Production 1125 1053 844
Direct Labor Minute per Tea 2 2 2
Total Direct Labor Minute Needed 2251 2105 1688
Direct Labor Cost Per Minute 0.70 0.70 0.70
Total Direct Labor Cost 1572 1471 1179
 Manufacturing Over
Jan Feb Mar
Budgeted Direct Labor Minute 2251 2105 1688
Variable Manufacturing Overhead Per Minute 0 0 0
Variable Manufacturing Overhead 306 286 229
Fixed Manufacturing Overhead 36 36 36
Total Manufacturing Overhead 342 322 265
Depreciation 36 36 36
Cash Disbursement in Manufacturing Overhead 306 286 229

Total Manufacturing Overhead

Budgeted Direct Labor Minute
Pre-Determined Overhead Rate for the year

Ending Finished Good Inventory Budget

Item Quantity Cost Total
Direct Material 1.66
Tea Leaf 2 0.53 1.06
Sugar 2 0.07 0.15
Condensed Milk 3 0.15 0.46
Direct Labor 2 0.70 1.40
Manufacturing Overhead 2 0.16 0.31
Unit Production Cost 3.37

Budgeted Finished Good Inventory 0

Unit Product Cost 3.37
Ending Inventory ( In Taka) 0

Selling and Administrative

Jan Feb Mar
Variable Selling and Administrative Expense 0 0 0
Fixed Selling and Administrative Expense
Area Commision 541 541 541
Rent 1082 1082 1082
Utility 216 216 216
Depreciation 65 65 65
Total Fixed Selling and Administrative Expense 1904 1904 1904
Total Selling and Administrative Expense 1904 1904 1904
Depreciation 65 65 65
Cash Disbursement for Selling and Administrative Expense 1839 1839 1839
 Cash Budge
Jan Feb Mar
Beginning Cash Balance 2825 3804 4960
Cash Receipts
Collection from Sales 8555 8468 7028
Total Cash Available 11380 12272 11988
Cash Disbursement
Direct Material 1860 1716 1354
Direct Labor 1572 1471 1179
Manufacturing Overhead 306 286 229
Selling and Administrative Expense 1839 1839 1839
Withdrawal 2000 2000 2000
Total Cash Disbursement 7577 7312 6602
Excess (Deficiency) of Cash Available dor Disbursement 3804 4960 5386

Financing 0 0 0
Ending Cash Balance 3804 4960 5386
 SALES BUDGET
Apr May Jun Jul Aug Sep Oct Nov Dec
545 563 545 675 788 871 1013 1089 1125
7.935 7.935 7.935 7.935 7.935 7.935 7.935 7.935 7.935
4321 4465 4321 5358 6250 6913 8036 8641 8929

Schedule of Expected Cash Collection

1339
3456 864
3572 893
3456 864
4286 1072
5000 1250
5530 1383
6429 1607
6913 1728
7143
4796 4436 4349 5150 6072 6780 7812 8520 8872

Production Budget
Apr May Jun Jul Aug Sep Oct Nov Dec
545 563 545 675 788 871 1013 1089 1125
0 0 0 0 0 0 0 0 0
545 563 545 675 788 871 1013 1089 1125
0 0 0 0 0 0 0 0 0
545 563 545 675 788 871 1013 1089 1125

Direct Material Budget

Apr May Jun Jul Aug Sep Oct Nov Dec
545 563 545 675 788 871 1013 1089 1125

2 2 2 2 2 2 2 2 2
2 2 2 2 2 2 2 2 2
3 3 3 3 3 3 3 3 3

1089 1125 1089 1350 1575 1742 2026 2178 2251

1089 1125 1089 1350 1575 1742 2026 2178 2251
1634 1688 1634 2026 2363 2614 3038 3267 3376
 113 109 135 158 174 203 218 225 248
113 109 135 158 174 203 218 225 248
169 163 203 236 261 304 327 338 371

109 113 109 135 158 174 203 218 225

109 113 109 135 158 174 203 218 225
163 169 163 203 236 261 304 327 338

1093 1122 1115 1373 1592 1771 2041 2185 2273

1093 1122 1115 1373 1592 1771 2041 2185 2273
1639 1683 1673 2059 2388 2656 3061 3278 3410

0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53 0.53

0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07 0.07
0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15 0.15

578 594 590 727 843 937 1080 1157 1203

81 83 82 101 118 131 151 161 168
250 256 255 314 364 405 467 500 520
909 933 928 1142 1324 1473 1697 1818 1891
chedule of Expected Cash Disbursion
Apr May Jun Jul Aug Sep Oct Nov Dec

909
933
928
1142
1324
1473
1697
1818
1891
909 933 928 1142 1324 1473 1697 1818 1891

Direct Labor Budget

Apr May Jun Jul Aug Sep Oct Nov Dec
545 563 545 675 788 871 1013 1089 1125
2 2 2 2 2 2 2 2 2
1089 1125 1089 1350 1575 1742 2026 2178 2251
0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.70
761 786 761 943 1101 1217 1415 1522 1572
 Manufacturing Overhead Cost
Apr May Jun Jul Aug Sep Oct Nov Dec
1089 1125 1089 1350 1575 1742 2026 2178 2251
0 0 0 0 0 0 0 0 0
148 153 148 184 214 237 275 296 306
36 36 36 36 36 36 36 36 36
184 189 184 219 250 272 311 332 342
36 36 36 36 36 36 36 36 36
148 153 148 184 214 237 275 296 306

ing and Administrative Expense Budget

Apr May Jun Jul Aug Sep Oct Nov Dec
0 0 0 0 0 0 0 0 0

541 541 541 541 541 541 541 541 541

1082 1082 1082 1082 1082 1082 1082 1082 1082
216 216 216 216 216 216 216 216 216
65 65 65 65 65 65 65 65 65
1904 1904 1904 1904 1904 1904 1904 1904 1904
1904 1904 1904 1904 1904 1904 1904 1904 1904
65 65 65 65 65 65 65 65 65
1839 1839 1839 1839 1839 1839 1839 1839 1839
Cash Budget
Apr May Jun Jul Aug Sep Oct Nov Dec
5386 4526 3251 1925 968 562 577 1162 2208

4796 4436 4349 5150 6072 6780 7812 8520 8872

10182 8962 7600 7076 7040 7343 8389 9682 11080

909 933 928 1142 1324 1473 1697 1818 1891

761 786 761 943 1101 1217 1415 1522 1572
148 153 148 184 214 237 275 296 306
1839 1839 1839 1839 1839 1839 1839 1839 1839
2000 2000 2000 2000 2000 2000 2000 2000 2000
5656 5711 5675 6108 6478 6766 7227 7474 7608
4526 3251 1925 968 562 577 1162 2208 3473

0 0 0 0 0 0 0 0 0
4526 3251 1925 968 562 577 1162 2208 3473
Total
10235
7.935
81213

1412
8929
8353
6697
4321
4465
4321
5358
6250
6913
8036
8641
7143
80839

Total
10235
0
10235
0
10235

Total
10235

2
2
3

20470
20470
30704
 248
248
371

225
225
338

20492
20492
30738

0.53
0.07
0.15

10848
1513
4684
17045

Total
1860
1716
1354
909
933
928
1142
1324
1473
1697
1818
1891
17045

Total
10235
2
20470
0.70
14301
Total
20470
0
2782
429
3210
429
2782

3210
20470
0.16

Total
0

6490
12979
2596
779
22843
22843
779
22065
Total
2825

80839
83664

17045
14301
2782
22065
24000
80192
3473

0
3473