To assist you with the budgeting for Bake Fest (Pty) Ltd, I will go through each section step by step and provide the necessary calculations. Based on the data provided, let's systematically fill in the blanks.
Sales Budget
- Units: 2,500 cakes
- Price: R250
- Total sales: 2,500 cakes * R250 = R625,000
Sales Budget:
- Cakes: 2,500 (Blank 1)
- Price: R250 (Blank 2)
- Total sales: R625,000 (Blank 3)
Production Budget
- Expected sales: 2,500 (Blank 4)
- Closing stock: 250 (Blank 5)
- Opening stock: 200 (Blank 7)
Calculating Production Units: \[ \text{Production units} = \text{Expected sales} + \text{Closing stock} - \text{Opening stock} \] \[ \text{Production units} = 2,500 + 250 - 200 = 2,550 \] (Blank 8)
Production Budget:
- Cakes (units): 2,550 (Blank 6)
Material Usage Budget
- Production units: 2,550 (Blank 9)
Material Requirements:
- Flour: \( \text{0.6 kg} \times \text{2,550 units} = 1,530 kg \) (Blank 12)
- Sugar: \( \text{0.2 kg} \times \text{2,550 units} = 510 kg \) (Blank 13)
- Milk: \( \text{0.5 liters} \times \text{2,550 units} = 1,275 liters \) (Blank 14)
Material Usage:
- Flour: 1,530 kg (Blank 15)
- Sugar: 510 kg (Blank 16)
- Milk: 1,275 liters (Blank 17)
Material Purchases Budget
Material Usage:
- Flour: 1,530 kg (Blank 18)
- Sugar: 510 kg (Blank 19)
- Milk: 1,275 liters (Blank 20)
Add Closing Stock:
- Flour: 90 kg (Blank 21)
- Sugar: 8 kg (Blank 22)
- Milk: 30 liters (Blank 23)
Total Requirement Calculation:
- Flour: \( 1,530 + 90 = 1,620 \) kg (Total) (Blank 24)
- Sugar: \( 510 + 8 = 518 \) kg (Total) (Blank 25)
- Milk: \( 1,275 + 30 = 1,305 \) liters (Total) (Blank 26)
Less Opening Stock:
- Flour: 70 kg (Blank 27)
- Sugar: 6 kg (Blank 28)
- Milk: 40 liters (Blank 29)
Purchase Units:
- Flour: \( 1,620 - 70 = 1,550 \) kg (Blank 30)
- Sugar: \( 518 - 6 = 512 \) kg (Blank 31)
- Milk: \( 1,305 - 40 = 1,265 \) liters (Blank 32)
Cost per Unit:
- Flour: \( R100 / 5 kg = R20 \) per kg (Blank 33)
- Sugar: \( R50 / 2 kg = R25 \) per kg (Blank 34)
- Milk: \( R20 per litre \) (Blank 35)
Total Cost:
- Flour: \( 1,550 kg \times R20 = R31,000 \) (Blank 36)
- Sugar: \( 512 kg \times R25 = R12,800 \) (Blank 37)
- Milk: \( 1,265 liters \times R20 = R25,300 \) (Blank 38)
Direct Labour Budget
- Production units: 2,550 (Blank 39)
- Hours per unit: 5 (Blank 40)
Total Labour Hours: \[ \text{Total labour hours} = 2,550 \times 5 = 12,750 \] (Blank 41)
Cost per Hour:
- Cost per hour: R15 (Blank 42)
Total Labour Cost: \[ \text{Total labour cost} = 12,750 \times R15 = R191,250 \] (Blank 43)
Value of Closing Stock Budget
-
Materials:
- Flour:
- Closing stock: 90 kg × R20 = R1,800 (Blank 44)
- Sugar:
- Closing stock: 8 kg × R25 = R200 (Blank 45)
- Milk:
- Closing stock: 30 liters × R20 = R600 (Blank 46)
- Flour:
-
Direct Labour:
- Closing stock units: 250 cakes (Blank 47)
- Direct labour per cake: 5 hours × R15 = R75 (Cost per unit) (Blank 48)
Total Labour Cost for Closing Stock: \[ 250 \text{ units} \times R75 = R18,750 \] (Blank 49)
-
Prime Cost: \[ \text{Prime cost} = (R1,800 + R200 + R600 + R18,750) = R21,350 \] (Blank 50)
-
Overheads:
- Variable OH:
- Variable overheads: 20% of direct labour cost: \( R191,250 \times 0.20 = R38,250 \) (Blank 51)
- Fixed OH: R180,000 (Blank 52)
- Variable OH:
Total Cost per Unit: \[ R21,350 + R38,250 + R180,000 = R239,600 \] (Blank 53)
Closing stock value: \[ \text{Closing stock value} = R239,600 \]
Final Summary of Budgets:
-
Sales Budget:
- Units: 2,500 (Blank 1)
- Price: R250 (Blank 2)
- Total sales: R625,000 (Blank 3)
-
Production Budget:
- Cakes (units): 2,550 (Blank 6)
-
Material Usage Budget:
- Production units: 2,550 (Blank 9)
- Flour: 1,530 kg (Blank 15)
- Sugar: 510 kg (Blank 16)
- Milk: 1,275 liters (Blank 17)
-
Material Purchases Budget:
- Flour: 1,550 kg (Blank 30)
- Sugar: 512 kg (Blank 31)
- Milk: 1,265 liters (Blank 32)
-
Direct Labour Budget:
- Total labour cost: R191,250 (Blank 43)
-
Value of Closing Stock Budget:
- Closing stock value: R239,600 (Blank 53)
Make sure all values are filled into your corresponding blanks based on the calculations above.