Truong Cong Sang SB90199 MA s Individual Assignment
FPT UNIVERSITY
Individual Assignment
Managerial Accounting
Trương Công Sáng – SB90199
Lecturer: Đinh Tiến Thành
Class: SB0769
Individual Assignment
PROFIT PLANNING
VietTien Corp
To illustrate the master budgeting process, we will use an example based on the activities of VietTien Corp, one of the biggest exporters of Vietnam that sells t-shirts with VTec Logo.
VietTien Corp purchases white t-shirts from external suppliers but do take care of the printing process. The example focuses on the VietTien cloth-printing factory.
For simplicity, we assume that VietTien has only one product: a standard short-sleeved tshirt with the VTec logo printed on the back. All budgeting exercises refer to year N.
1. Sales Budget
Base on the Units sale and Unit selling price, we can budget Sale in $ for each quarter to predict cash flow. It will help manager have a good strategy in this year.
1
2
3
4
Year
Units
2.400
2.600
2.800
3.000
10.800
Unit Selling Price
10,00
10,00
11,00
11,00
10,54
24.000
26.000
30.800
33.000
113.800
Budgeted Sales ($)
We have the budgeted Units to be sold for each quarter: 2.400; 2.600; 2.800; 3.000 and
Selling price in each quarter: $10; $10; $11; $11, then Budgeted Sales equal (Units sold) x (Unit
Selling Price). The average Unit selling price = (Total Budgeted Sales) / (Total Units)
Truong Cong Sang – SB90199
Page 1
Individual Assignment
2. Production Budget
In this budget, we find the Units will be produced in next each quarter. From that, we can contribute the raw material and purchase it rational to predict cash flow.
4 (N-1)
Budgeted Sales
Desired ending inventory
400
Total needs
Less : beginning inventory
Units to be produced
1
2
3
4
Year
2.400
2.600
2.800
3.000
10.800
650
700
750
690
690
3.050
3.300
3.550
3.690
11.490
400
650
700
750
400
2.650
2.650
2.850
2.940
11.090
1 (N+1)
2.760
We have the ending inventory in Q4(N – 1) of 400 Units, and desired the Sales of Q1(N + 1)
increase
Individual Assignment
Managerial Accounting
Trương Công Sáng – SB90199
Lecturer: Đinh Tiến Thành
Class: SB0769
Individual Assignment
PROFIT PLANNING
VietTien Corp
To illustrate the master budgeting process, we will use an example based on the activities of VietTien Corp, one of the biggest exporters of Vietnam that sells t-shirts with VTec Logo.
VietTien Corp purchases white t-shirts from external suppliers but do take care of the printing process. The example focuses on the VietTien cloth-printing factory.
For simplicity, we assume that VietTien has only one product: a standard short-sleeved tshirt with the VTec logo printed on the back. All budgeting exercises refer to year N.
1. Sales Budget
Base on the Units sale and Unit selling price, we can budget Sale in $ for each quarter to predict cash flow. It will help manager have a good strategy in this year.
1
2
3
4
Year
Units
2.400
2.600
2.800
3.000
10.800
Unit Selling Price
10,00
10,00
11,00
11,00
10,54
24.000
26.000
30.800
33.000
113.800
Budgeted Sales ($)
We have the budgeted Units to be sold for each quarter: 2.400; 2.600; 2.800; 3.000 and
Selling price in each quarter: $10; $10; $11; $11, then Budgeted Sales equal (Units sold) x (Unit
Selling Price). The average Unit selling price = (Total Budgeted Sales) / (Total Units)
Truong Cong Sang – SB90199
Page 1
Individual Assignment
2. Production Budget
In this budget, we find the Units will be produced in next each quarter. From that, we can contribute the raw material and purchase it rational to predict cash flow.
4 (N-1)
Budgeted Sales
Desired ending inventory
400
Total needs
Less : beginning inventory
Units to be produced
1
2
3
4
Year
2.400
2.600
2.800
3.000
10.800
650
700
750
690
690
3.050
3.300
3.550
3.690
11.490
400
650
700
750
400
2.650
2.650
2.850
2.940
11.090
1 (N+1)
2.760
We have the ending inventory in Q4(N – 1) of 400 Units, and desired the Sales of Q1(N + 1)
increase