Budgetary Control System for Hospitality Business Industry

Running Head: Budgetary Control System
Management Accounting

Budgetary Control System 1
Part A
SALES BUDGET
February March April May June
No. of units Sold
(A) 12000 12500 13000 14000 14000
Selling price per
set (B)
$
24.00
$
24.00
$
24.00
$
24.00
$
24.00
Sales (A*B)
$
2,88,000.00
$
3,00,000.00
$
3,12,000.00
$
3,36,000.00
$
3,36,000.00
Part B
Estimated Cash Collections from Receivables in 2nd Quarter
July August September
Collection in next month $ 1,34,400.00 $ 1,48,800.00 $ 1,53,600.00
Collection in second next month
$
67,200.00 $ 67,200.00 $ 74,400.00
Total Collection from Sales $ 3,50,400.00 $ 3,69,600.00 $ 4,00,800.00
Part C
The Number of Units to be produced in the 2nd Quarter
July August September
Sales 15500 16000 18000
Add: Closing Inventory 11600 8400 4800
Less: Opening Inventory 9900 11600 8400
No. of units to be produced 17200 12800 14400
Part D
Direct Materials Budget for the 2nd quarter

Budgetary Control System 2
July August September
Raw Material consumption 17200 12800 14400
Add: Raw Material Closing Inventory 5120 5760 7680
Less: Raw Material opening
Inventory 6880 5120 5760
Raw Material to be purchased 15440 13440 16320
Purchase Price $ 4.00 $ 4.00 $ 4.00
Direct Material Cost $ 61,760.00 $ 53,760.00 $ 65,280.00
Part E
Cash Budget for 2nd Quarter
April May June July August
Septembe
r
Opening Cash Balance 16800 -31599 65283 167764 304109 494175
Sales Collection 302400 319200 331200 350400 369600 400800
Less
Variable selling expenses 15600 16800 16800 18600 19200 21600
Administrative expenses 14767 14767 14767 14767 14767 14767
Factory overhead 52000 52000 52000 52000 52000 52000
Production labour cost 112000 92160 94720 110080 81920 92160
Purchase payment owning
to last quarter 82000
purchase payment @20% in
2nd quarter 74432 46592 50432 18608 11648 12608
Total payments 350799 222319 228719 214055 179535 193135
Closing Cash Balance -31599 65283 167764 304109 494175 701840
PART F
Income Statement for 2nd Quarter
July August September
Sales
$
3,72,000.00 $ 3,84,000.00 $ 4,32,000.00