ASSIGNMENT ON

BUDGETING FOR
PLANNING AND
CONTROL

Group Members
Name Enrollment Number
Jigme Thinley Dorji 107291
Kinley Yangden 108003
Sonam Peldon 107258
Tashi Lhendup Namgyel 107818
Tshewang Rinzin 108118
  
Table of Contents
Introduction (About the company)...............................................................................................3
SALES BUDGET........................................................................................................................4
Production Budget........................................................................................................................5
Direct Material Purchase Budget.................................................................................................7
Direct Labor Budget.....................................................................................................................9
Manufacturing overhead Budget................................................................................................10
Selling and Administrative Budget............................................................................................12
Budgeted Income statement.......................................................................................................13
Capital Expenditure Budget.......................................................................................................15
Cash Budget...............................................................................................................................16
Budgeted Balance Sheet.............................................................................................................19
Profit and Loss Statement..........................................................................................................21
Recommendations......................................................................................................................22
Conclusion.................................................................................................................................23
Contribution Table.....................................................................................................................24
References..................................................................................................................................25

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Introduction (About the company)

High Spirits Ltd was established in 2021 by Mr. Younten. It is a company that sells local rice-
based wines such as Ara, Changkhay, Bangchang, Tongba, and Singchang. It has a good
outreach in the market as most of its customers enjoy local wine and are traditional drinkers. The
factory is located in Trashigang Dzongkhag under Khaling gewog. It has dispensaries in
Thimphu, Punakha, Bumthang and Mongar. Its sales are made mainly during the festive seasons
such as Losar (Bhutanese new year) and it also provides medicinal value which makes it a drink
that is sought after.

A master budget is a comprehensive financial planning document that includes all of the lower-
level budgets, cash flow forecasts, budgeted financial statements, and financial plans of an
organization. (Master Budget, 2021). The master budget shows the operating budget, a summary
of revenue and expenses, and all the specifics of the company's income-generating activities.
Master budget concentrates on saving money for expanding rather than just sustaining your
business. With this emphasis, you not only keep an eye on your current bottom line (a financial
report that displays net profit or loss) but also aim to increase your income in the future to
increase it. (Johnston, K., 2016).

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SALES BUDGET

Preparation of the master budget for the quarterly basis of the new financial year requires the
first quarter's sales from the previous year. Prior year's quarterly sales were as follows (1 unit=1
bottle):

First quarter 8,000 units

Second quarter 8,800 units

Third quarter 7,200 units

Fourth quarter 6,000 units

Unit Sales are expected to increase 15% in the upcoming year, and each unit is expected to sell
for Nu. 200. The management prefers to maintain an ending finished goods inventory equal to
10%of the next quarter's sales. It is assumed that the finished goods inventory at the end of the
fourth quarter budget period is estimated to be 10,000 units.

High Spirits Ltd

Sales Budget
Year Ending 31st December

Quarter

1 2 3 4 Year

Prior year sales in units 8,000 8,800 7,200 6,000 30,000

(1 unit=1 bottle)
Budget increase of 15% x 1.15 x 1.15 x 1.15 x 1.15 x 1.15
Projected sales in units 9,200 10,120 8,280 6,900 34,500
Sales price per unit (Nu) x 200 x 200 x 200 x 200 x 200
Sales revenue 1,840,000 2,024,000 1,656,000 1,380,000 6,900,000

Figure 1.1 Sales Budget for High Spirit Ltd.

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With the assumption that the company will increase its sales by 15% this coming year, the first
quarter’s sales from last year are multiplied by 1.15 to get the predicted sales. The average price
per unit was Nu.200 and it is anticipated that there is no change in the average price per unit
from last year. The sales budget is presented in Figure 1.1“Sales Budget for High Spirits Ltd”

Production Budget.

High Spirits Ltd Company plans to sell 9,200 units in the first quarter, as depicted in Figure 1.1
“Sales Budget for High Spirits Ltd”. For the sake of simplicity, it is assumed that the work-in-
progress inventory is significant, and therefore beginning and work-in-progress are zero. (We
assume beginning and ending work-in-progress inventory is zero throughout this chapter). The
management prefers to maintain 10% of next quarter's sales in ending inventory. Thus, 1,012
units will be in inventory at the end of the first quarter (10,120 unit’s sales in the second quarter
x 10%). Units required for the first quarter totaled 10,212 (9,200 units sales + 1,012 united
desired ending inventory). However, the company will not be able to produce 10,212 units there
will be certain leftover inventories from the 4 quarters of the previous year. This beginning
inventory will be 920 units (9,200 unit’s sales in the first quarter x 10%). Thus actual production
will be 10,120 units.

The production budget for each of the upcoming year's four quarters is shown in Figure 2.1
("Production Budget for High Spirits Ltd").

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 High Spirits Ltd
Production Budget
Year Ending 31st December

Quarter

1 2 3 4 Year

Sales in units (a) 9,200 10,120 8,280 6,900 34,500

Add desired ending 1,012 828 690 720 720

finished good inventory(b)

Total Finished goods 10,212 10,948 8,970 7,620 35,220

inventory needed

Deduct beginning finished (920) (1012) (828) (690) (920)

goods inventory (c)

Units to be produced 9,292 9,936 8,142 6,930 34,300

Figure 2.1 Production Budget for High Spirits Ltd

Desired ending inventory.

Desired ending inventory is equal to 10% of sales for the next quarter; for the first quarter 1,012
equals 10,120 of 0.10. 720 units of intended ending inventory for the fourth quarter are based on
anticipated sales for the first quarter of 2021.

Beginning inventory is the same as the inventory at the end of the preceding quarter; for
instance, second-quarter beginning inventory is the same as first-quarter ending inventory.

Budgets for direct materials, direct labor, and manufacturing overhead are developed after High
Spirits Ltd is aware of the number of units it must manufacture each quarter. Next, we'll provide
their budgets.

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Direct Material Purchase Budget.

Assume that it takes twenty-five kilograms of raw material to make one unit of the product.
Therefore, 232,000 kilograms of components are needed to make 9,292 units of High Spirits Ltd
(9,292 units x 25 kilograms each unit). In the direct materials purchases budget for High Spirits,
Ltd Manufacturing Company presented in figure 3.1, "Direct Materials Purchases Budget for
High Spirits Ltd," this sum is listed as "Materials Needed in Production." (For the sake of
simplicity, let's suppose that rice is the sole ingredient. However, other ingredients like yeast and
water are often needed to make the High Spirits Ltd.) Therefore, the direct materials cost per unit
is Nu 50.

High Spirits Ltd

Direct Material Purchase Budget
Year Ending 31st December

Quarter

1 2 3 4 Year

Units to be 9,292 9,936 8,142 6,930 34,300

produced

Materials required x 25 x 25 x 25 x 25 x 25
per unit (kg)

Material needed in 232,300 248,400 203,550 173,250 857,500

production

Add desired 24,840 20,355 17,325 14,580 14,580

ending inventory

Materials needed 257,140 268,755 220,875 187,830 872,080

in inventory

Deduct beginning (23,230) (24,840) (20,355) (17,325) (23,230)

inventory

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Direct material to 233,910 243,915 200,520 170,505 848,850
be purchased
(Ngultrum)

Cost of material x2 x2 x2 x2 x2
per kg

Cost of materials Nu. 467,820 Nu. 487,830 Nu. 401,040 Nu. 341,010 Nu.
to be purchased 1,697,700

Direct material Nu. 50

cost per unit

Figure 3.1 Direct Material Purchase Budget for High Spirits Ltd.

Desired ending inventory

On average, the desired ending inventory is equal to 10% of the production requirements for the
next quarter; for the first quarter, 24,840 = 0.10 of 248,400. The 14,580 kilograms of targeted
ending inventory for the fourth quarter is based on an estimation of the materials required for
production in the first quarter of 2021.

Beginning inventory is the same as the inventory at the end of the preceding quarter; for
instance, second-quarter beginning inventory is the same as first-quarter ending inventory.

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Direct Labor Budget.

Assume that it takes 5 direct labor hours per unit to create 1 unit of the product. Thus, 46,460
hours of direct labor (9,292 completed units created 5 direct labor hours per unit) are needed to
make 9,292 pieces of product. With an average hourly wage of Nu 8, the first quarter's direct
labor costs come to Nu. 371,680 (or 46,460 hours multiplied by Nu 8 per hour). The direct labor
budget for High Spirits Ltd, illustrated in figure 4.1, contains this information. Therefore, the
direct labor cost per unit is Nu 40.

High Spirits Ltd

Direct Labor Budget
Year Ending 31st December

Quarter

1 2 3 4 Year

Units to be produced 9,292 9,936 8,142 6,930 34,300

Direct labor hours per x 0.1 x 0.1 x 0.1 x 0.1 x 0.1

unit (labor hour per
unit)

Total direct labor 929.2 993.6 814.2 693 3,430

hours needed in
production

Labor rate per hour x 400 x 400 x 400 x 400 x 400

(Ngultrum)

Total direct labor cost Nu. 371,680 Nu. 397,440 Nu.325,680 Nu. 277,200 Nu.
(Ngultrum) 1,372,000

Direct labor cost per Nu. 40

unit (Ngultrum per
hour)

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 Figure 4.1 Direct Labour Budget for High Spirits Ltd.

Direct labor cost per unit

Direct labor costs per unit of Nu 40 are calculated as 0.1 direct labor hours per unit(6 minutes per
unit) multiplied by Nu. 400 per hour.

Examine the "Direct Labor Budget for High Spirits Ltd" in the table given above in great detail.
Yonten Phuntsho, the production manager of High Spirits Ltd, analyzes this data to make sure
there are enough workers on hand to reach production targets. You'll see that the second quarter's
required direct labor hours for output are much greater than those for the first and third quarters.
Again, this is why businesses create budgets: to account for these kinds of occurrences. In order
to prepare for this increase in direct labor hours, Younten will need to start asking staff members
to put in more hours or hire more staff members.

Manufacturing overhead Budget.

High Spirits Ltd

Manufacturing overhead budget
Year Ending 31st December

Quarter

1 2 3 4 Year

Units to be produced 9,292 9,936 8,142 6,930 34,300

Variable overhead costs

Indirect Materials (Nu. Nu.18,584 Nu.19,872 Nu.16,284 Nu.13,860 Nu.68,600

2 per unit)

9|Page
 Indirect Labor (3 per 27,876 29,808 24,426 20,790 102,900
unit)

Other(2) 18,584 19,872 16,284 13,860 68,600

Total variable overhead Nu.65,044 Nu.69,552 Nu.56,994 Nu.48,510 Nu.240,100

cost

Fixed overhead costs

Salaries 50,000 50,000 50,000 50,000 200,000

Rent 20,000 20,000 20,000 20,000 80,000

Depreciation 15,000 15,000 15,000 15,000 60,000

Total Fixed overhead Nu.85,000 Nu.85,000 Nu.85,000 Nu.85,000 Nu.340,000

costs

Total overhead costs 150,044 154,552 141,994 133,510 580,100

Deduct depreciation (15,000) (15,000) (15,000) (15,000) (60,000)

Cash payment for 135,044 139,552 126,992 118,510 520,100

overhead

Manufacturing overhead Nu. 17

per unit

Figure 5.1 Manufacturing overhead Budget for High Spirits Ltd

Manufacturing overhead per unit

Nu 17 = 580,100 total overhead costs divided by 34,300 units to be produced for the year

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To determine the real cash payment for overhead, deduct depreciation. The cash budget for High
Spirits Ltd, shown in figure 9.1, requires this information.

Indirect Materials (Nu. 2 per unit)

Total variable overhead costs are computed by multiplying the number of units to be produced
by the cost per unit and, by definition, fluctuate with changes in output. For instance, the Nu.
18,584 in indirect materials costs for the first quarter are determined by multiplying the number
of units to be produced (9,292) by the unit cost (Nu. 2). Since fixed expenses often do not
fluctuate with output, they are constant each quarter. (Note: Fixed overhead costs can fluctuate
from one quarter to the next.)

Selling and Administrative Budget.

High Spirits Ltd Manufacturing Company regards all selling and administrative expenditures as
constant costs, despite the fact that many firms may have variable and fixed costs in their budget.
At the bottom of this budget, depreciation is once again subtracted in order to arrive at the cash
payments for selling and administrative expenses that we will utilize later in the chapter for the
cash budget.

High Spirits Ltd

Selling and Administrative Budget
Year Ending 31st December

Quarter

1 2 3 4 Year

Salaries 60,000 60,000 60,000 60,000 240,000

Rent 10,000 10,000 10,000 10,000 40,000

Advertising 8,000 8,000 8,000 8,000 32,000

Depreciation 5,000 5,000 5,000 5,000 20,000

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Others 2,000 2,000 2,000 2,000 8,000

Total selling and 85,000 85,000 85,000 85,000 340,000

administrative cost

Deduct depreciation (5,000) (5,000) (5,000) (5,000) (20,000)

Cash payment for selling 80,000 80,000 80,000 80,000 320,000

and administration

Figure 6.1 Selling and Administrative Budget for High Spirits Ltd

To calculate the real cash payment for selling and administrative charges, deduct depreciation.

Budgeted Income statement

The net income from the budgeted income statement is Nu. 2,868,500 which is calculated by
finding sales amount from the projected sales and subtracting expenses of the projected sales
units and not the units produced. Therefore, it only provides an estimate on the units sold and not
the units produced.

High Spirits Ltd

Budgeted Income statement
Year Ending 31st December

Quarter

1 2 3 4
Year
(9,200 units) (10,120 units) (8,280 units) (6,900 units)

Sales 1,840,000 2,024,000 1,656,000 1,380,000 6,900,000

Deduct costs of (984,400) (1,082,840) (885,960) (738,300) (3,691,500)

goods sold

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Gross margin 855,600 941,160 770,040 641,700 3,208,500

Deduct selling (85,000) (85,000) (85,000) (85,000) (340,000)

and
administrative
costs

Net income Nu. 770,600 Nu. 856,160 Nu. 685,040 Nu. 556,700 Nu.
2,868,500

Figure 7.1 Budgeted Income Statement for High Spirits Ltd

Deduct costs of goods sold

Cost of goods sold is calculated as follows: during the first quarter, Nu 984,400 in cost of goods
sold equals Nu 107 per unit cost 9200 units (see figure 1.1, "Sales Budget for High Spirits Ltd").

Sales, the first line of the planned revenue statement, are taken from the sales budget in
Figure 1.1, "High Spirits Ltd Sales Budget." The projected sales from Figure 1.1, "Sales Budget
for High Spirits Ltd," are multiplied by the cost per unit to arrive at the following line, cost of
goods sold. On the bottom of "Budgeted Income Statement for High Spirits Ltds Manufacturing
Company" in Figure 7.1, the cost per unit computation is displayed.

The total cost of goods sold Year

Per unit cost of goods sold calculation

Direct Material Nu. 50

Direct Labour Nu. 40

Manufacturing Overhead Nu. 17

Total costs of goods sold per unit Nu. 107

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 Figure 7.2 Total Cost of Goods Sold for High Spirits Ltd

The total cost of goods sold.

All production expenses associated with the items supplied are included (or completely
absorbed) in the cost of goods sold at High Spirits Ltd since full-absorption costing is used.
Figures 3.1, 4.1, and 5.1, titled "Direct Materials Purchases Budget for High Spirits Ltd," "Direct
Labor Budget for High Spirits Ltd," and "Manufacturing Overhead Budget for High Spirits Ltd,"
respectively, give this information on a per-unit basis.

Capital Expenditure Budget

High Spirits Ltd

Capital Expenditure Budget
Year Ending 31st December

Quarter

1 2 3 4 Year

Selling and — — — 24,000 24,000

administration(equi
pment)

Production — — — 46,000 46,000

(machinery)

Total — — — 70,000 70,000

Figure 8.1 Capital Expenditure Budget for High Spirits Ltd

These purchases will have no effect on the depreciation expense as the items will be purchased at
the end of the year. Thus, the depreciation begins the following year.

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Cash Budget

High Spirits Ltd

Cash Budget
Year Ending 31st December

Quarter

1 2 3 4 Year

Cash Collections from

Sales (a)

Fourth quarter prior year 480,000 480,000

(1,200,000 sales)

First quarter (1,840,000 1,104,000 736,000 1,840,000

sales)

Second quarter 1,214,400 809,600 2,024,000

(2,024,000 sales)

Third quarter (1,656,000 993,600 662,400 1,656,000

sales)

Fourth quarter 828,000 828,000

(1,380,000 sales)

Total cash collection 1,584,000 1,950,400 1,803,200 1,490,400 6,828,000

Cash payments for

purchases of materials (b)

Fourth quarter period (26,854) (26,854)

year (assumed)

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 First quarter (Nu. (327,474) (140,346) (467,820)
467,820 purchases)

Second quarter ( Nu. (341,481) (146,349) (487,830)

487,830 purchases)

Third quarter (Nu. (280,728) (120,312) (401,040)

401,040 purchases)

Fourth quarter (Nu. (238,707) (238,707)

341,010 purchases)

Total Cash payments for (354,328) (481,827) (427,077) (359,019) (1,622,251)

purchases

Other cash payments

Direct labor (371,680) (397,44 (321,360) (277,200 (1,367,680)

0) )

Manufacturing overhead (135,044) (139,552) (126,992) (118,510) (520,098)

Selling and (80,000) (80,000) (80,000) (80,000) (320,000)

administrative

Capital expenditures (70,000) (70,000)

Total other cash (586,724) (616,992) (528,352) (545,710) (2,277,778)

payments

Excess(shortage) of 642,948 851,581 847,771 585,671 2,927,971

collections over payment

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Beginning cash balance 200,000 842,948 1,694,529 2,542,300 200,000

Ending cash balance 842,948 1,694,529 2,542,300 3,127,971 3,127,971

Figure 9.1 Cash Budget for High Spirits Ltd

Based on the sales budget for High Spirit Ltd every transaction is made on credit, with 60% of
the total amount collected in the quarter of the sale and 40% collected in the quarter after.

Based on the budget for direct materials purchases for High Spirit Ltd, all purchases are made on
credit, with 70% of the total paid in the quarter of purchase and the remaining 30% paid in the
quarter after.

Excess (shortage) of collections over payment.

Excess of collections over payments is calculated as follows: Total cash collected from sales -
Total cash paid for purchasing materials - Total of other cash paid.

Beginning cash balance.

Beginning cash balance equals cash on hand at the conclusion of the prior period. The first
quarter's balance is presented.

Ending cash balance.

Excess of collections over payments for the quarter plus the beginning cash amount equals the
ending cash balance.

Budgeted Balance Sheet

Figure 10.1 , titled "Budgeted Balance Sheet for High Spirit," which is a reference to the
information needed to produce the budgeted balance sheet for High Spirit Ltd,

Nu 970,000 in plant and equipment (net) is anticipated at the end of the budgetary term which is
on December 31.

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It is anticipated that there will be Nu. 1,243,668 in issued and outstanding common stock in
shares at the end of the budgetary period on December 31.

There will be no cash dividends paid for the current budget year, which ends on December 31,
even though actual retained earnings at the end of the previous year reached Nu 500,000
(Assumed)

High Spirits Ltd

Budgeted Balance Sheet
Year Ending 31st December

Assets
Non-Current Assets
Plants and equipment (net) 970,000
Total non-current assets 970,000
Current Assets
Cash 3,127,971
Accounts receivable 552,000
Raw materials inventory 29,160
Finished goods inventory 77,040
Total current assets 3,786,171

Total assets 4,756,171

Liabilities and Owner's Equity

Current liabilities
Accounts payables 102,303
Total current liabilities 102,303
Owners’ equity
Stock 1,243,668
Retained earnings 3,410,200
Total owners’ equity 4,653,868

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 Total liabilities and owner's equity 4,756,171

Figure 10.1 Budgeted Balance Sheet for High Spirits Ltd

Property, plant and equipment

Nu. 900,000 was the amount carried forward from the previous year and an additional 70,000
(Figure 8.1, “Capital Expenditure Budget”) was acquired the current year making the total into
970,000.

Amount receivable

Nu. 552,000 in fourth quarter sales equal Nu. 1,380,000 (Figure 1.1, "High Spirit Ltd Sales
Budget"), of which 40% will be collected the following quarter (Figure 9.1, "High Spirit Ltd
Cash Budget").

Raw materials inventory

Figure 3.1, "Direct Materials Purchases Budget for High Spirit Ltd," shows that Nu 29,160 is
equivalent to 14,580 Kilograms at a cost of Nu 2 per kilogram.

Finished goods inventory

Nu 77,040 = 720 units (Figure 2.1 Production Budget for High Spirits Ltd) x Nu 107 (Figure 7.2
Total Cost of Goods Sold for High Spirits Ltd.")

Accounts payables

In the fourth quarter, purchases were Nu. 102,303 for a total of Nu. 341,010 (Figure 3.1, "Direct
Materials Purchases Budget for High Spirit Ltd"). 30% will be paid in the following fiscal
quarter (see "Cash Budget for High Spirit Ltd" in Figure 9.1).

Retained Earning

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Figure 10.1, "Profit and Loss Statement for High Spirit Ltd," breaks down the amount as follows:
Nu 3,410,200= Nu 500,000 in retained earnings at the end of the prior year (assumed) + Nu
2,910,200 net income for the year. The net income is taken from the profit and loss and not the
budget income statement because the budgeted income statement only takes the expenses of the
amount to be sold and not the amount that is produced.

Profit and Loss Statement

High Spirits Ltd

Profit and Loss Statement
Year Ending 31st December

Particulars Amounts (Nu.) Amounts (Nu.)

Sales 6,900,000
Cost of goods sold (1,697,700)
Gross Profit 5,202,300
Operating Expenses
Advertisement Expenses (32,000)
Overhead expenses (240,100)
Depreciation Expenses (80,000)
Rent Expenses (120,000)
Salary Expenses (440,000)
Wages Expenses (1,372,000)
Other operating expenses (8,000)
Total operating Expenses (2,292,100)
Operating Income 2,910,200
Non-operating Income
Revenue from interest —
Interest expenses — —
Total Non-operating Income 2,910,200
Net income 2,910,200

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Recommendations

1. Prioritize certain budgeting elements

An organization’s budget dictates how it leverages capital to work toward goals. For this reason,
before preparing an organizational budget, it’s important to understand what goes into a budget
and the key steps involved in creating one. Assessing the company’s resources to learn about the
budgeting components to prioritize certain budgeting elements will help in performing daily
work operations. Moreover, companies should ensure that budgeted expenses do not exceed the
profit or sales revenue.

2. Labor wages in the piece-rate system

The labor in the company was paid on a time rate system, which is according to the time they
work. However, there is no distinction between efficient and inefficient work and there is a need
for constant checks on workers so that workers do not waste their time. Therefore, with the
company being a manufacturing industry we suggest the company use a piece-rate system as it
would be a better and more suitable method of remuneration since, if the workers are paid on a
piece basis the wages paid will be as per their effort and this will help the company from
reducing the cost of labor wages.

3. Managing budget effectively

Effective budget management can help management to set and track internal goals. According to
(O’Shea, B., & Schwahn, L.2022), as your priorities, costs, and income will shift throughout
time. Therefore, in order to effectively manage your spending the company should check its
budget once per quarter so as to achieve its objectives and foresee any necessary operational
adjustments to support the business.

4. Preparation of sales budget

The basis for all other budgets that the firm must develop is the sales budget, which is an
itemized list of sales revenue that a company anticipates for an accounting period. In order to
avoid exceeding or underestimating the business's budget, a corporation should keep its sales
budget within reasonable bounds.

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Conclusion

In conclusion, High Spirits Ltd was founded in the year 2021. It is a business that offers regional
wines made from rice, including Ara, Changkhay, Bangchang, Tongba, and Singchang. Sales are
primarily made during holiday seasons like Losar (Bhutanese New Year).

A master budget is a thorough financial planning document that contains all of an organization's
budgets, cash flow statements, and financial statements. Master budgets for businesses are
created by combining a series of smaller department budgets like budget schedules for sales,
production, direct materials, direct labor, manufacturing overheads, selling, and administrative
costs, as well as income statements, capital expenditure, cash, and balance sheet. A master
budget can be a helpful tool for smaller manufacturing businesses. Instead of only focusing on
maintaining the firm, the master budget focuses on conserving money for growth. With this
emphasis, you try to boost your income going forward while keeping an eye on your current
bottom line.

Contribution Table

Name & Enrollment Contribution

No.

Jigme Thinley Dorji ● Has Prepared the Production Budget

(107291) ● Worked on Selling and Administrative Overhead with Tashi
Lhendrup Namgyal.

Kinley Yangden ● Has worked on the Introduction of the company.

(108003) ● Has worked on Preparing Manufacturing Overhead Budget
along with Sonam Peldon.

Sonam Peldon ● Has Prepared Sales Budget.

(107258) ● Has worked on Preparing Manufacturing Overhead Budget
along with Kinley Yangden.

Tashi Lhendrup ● Has Prepared Direct Material Purchased Budget.

Namgyal (107818) ● Worked on Selling and Administrative Overhead with Jigme
Thinley Dorji.

Tshewang Rinzin ● Has Prepared Direct Labour Budget.

(108118) ● Worked on Recommendations.

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 ● Prepared on Capital Budget.

All the members worked together for the preparation of the Budgeted Income Statement, Cash
Budget, Budgeted Balance Sheet, and Profit and Loss Account of the company.

References

Accounting for a manager. (2022, February 5). The Master Budget.

https://www.coursehero.com

Cox, P. (2010). The Master Budget project: detailed analysis. Strategic Finance, 92(4), 62+.

https://link.gale.com

How to prepare a master budget. (2022, May 18). The Ascent.

https://www.fool.com

Johnston,K.(2016,October26).HowDoesaBudgetHelpManagementMakeGoodDecisions? https://s

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 mallbusiness.chron.com

O’Shea, B., & Schwahn, L. (2022, May 18). Budgeting 101: How to Budget Money. NerdWallet.

https://www.nerdwallet.com

Mitiso,D. (2022, November 7). How To Prepare an Operational Budget (With Steps and Tips.

https://www.indeed.com

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