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Administrative Studies
ADMS 1500
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To Calculate the % Year-On-Year Increase in Sales Present Year - Previous Year ___________________________ Previous Year To Average % increase to estimate sales for year 6 Add all years% Average % = _____________ Number Of Units For year 6 add year 5 x Average % (add result into year 5)= Sales for 6th Year *Bugeted sales revenue = units x selling price how many units he should plan to manufacture in a year(budgeted production). his units less opening inventory add closing inventory budgeted production * if ask monthly.. then budgeted productin / 12 * if ask about calculate the cost of goods manufactured.. multiply all cost then add it and multiply it by budgeted production. * to calculate cost of goods sold total cost x sales Production Budget In Units Sales 54,000 Add: Closing Inventory 6,000 ______ (So we need to produce) 60,000 Less: Opening Inventory (10,000) ______ xProduction Budget 50,000 (We need to produce only) Calculate the cost of goods Manufactured. Raw Material = 2 x 5 = 10 $ DL (Direct Labour) = 4 x 20 = 80 $ PO (Production Overhead) = 4 x 10 = 40 $ ____ 130 $ x 50,000 = 6500,000 units Goods Manufactured x Production Budget = Calculate the cost of goods sold. 130 x 54,000 = 7,020,000 sales units (D) Calculate the budgeted Sales. = Total Budgeted Unit Sales X Unit Price = 54,000 x 200 = 10,800,000 (E) Budgeted Income Statement For the year * Will be prepared by the given information in question. Income Statement Sales 10,800,000 Less: Cost Of Goods Sold (7,020,000) ___________ Gross Margin 3,780,000 Selling and administrative expenses (2,500,000) ___________ Operating Income 1,280,000 Selling Price per unit - Variable Cost per unit = Contribution Margin per unit Operating P
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