To Calculate the % Year-On-Year Increase in Sales
Present 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).
less opening inventory
add closing inventory
* 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
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
(E) Budgeted Income Statement For the year
* Will be prepared by the given information in question.
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