1. 14.23 Comprehensive review of budgetting Menno Verheijen en Stefan de Weerd

2. Inleidende informatie (1) Het bedrijf British Beverages bottelt twee soorten frisdrank onder de naam Cadbury Schweppes. De enige voorraad die wordt gehouden bestaat uit directe materialen of voorraad gereed product. Er is geen onderhanden werk. De twee frisdranken zijn lemonade en diet lemonade. British Beverages hanteert als eenheid een lot-grootte van 1000 kratten, waarbij 1 krat 24 flessen bevat. 1 lot = 1 unit. Directe materialen worden uitgedrukt in lot; één lot directe materialen is dat wat nodig is om één lot eindproduct te krijgen.

3. Inleidende informatie (2) LemonadeDiet Lemonade Syrup£ 1 200 per lot£ 1 100 per lot Containers£ 1 000 per lot Packaging£ 800 per lot Voorspelde kostprijzen van directe materialen voor 2002: De twee frisdranken worden met dezelfde machines gebottelt. Het enige verschil in het ‘bottel-proces’ is dat de frisdranken verschillende siropen krijgen.

4. Inleidende informatie (3) a) Sales - Lemonade, 1080 lots at £ 9 000 selling price per lot - Diet lemonade, 540 lots at £ 8 500 selling price per lot b) Opening (1 January 2002) stock of direct materials - Syrup for lemonade, 80 lots at £ 1 100 purchase price per lot - Syrup for diet lemonade, 70 lots at £ 1 000 purchase price per lot - Containers, 200 lots at £ 950 purchase price per lot - Packaging, 400 lots at £ 900 purchase price per lot c) Opening (1 January 2002) stock of finished goods - Lemonade, 100 lots at £ 5 300 per lot - Diet lemonade, 50 lots at £ 5 200 per lot

5. Inleidende informatie (4) d) Target closing (31 December 2002) stock of dir. materials - Syrup for lemonade, 30 lots - Syrup for diet lemonade, 20 lots - Containers, 100 lots - Packaging, 200 lots e) Target closing (31 December 2002) stock of finished goods - Lemonade, 20 lots - Diet lemonade, 10 lots f) Each lot requires 20 direct manufacturing labour-hours at the 2002 budgeted rate of £ 25 per hour. Indirect manufacturing labour costs are included in the manufacturing overhead forecast.

6. Inleidende informatie (5) g) Variable manufacturing overhead is forecast to be £ 600 per hour of bottling time; bottling time is the time the filling equipment is in operation. It takes 2 hours to bottle one lot of lemonade and 2 hours to bottle one lot of diet lemonade. Fixed manufacturing overhead is forecast to be £ 1 200 000 for 2002. h) Hours of budgeted bottling time is the sole allocation base for all fixed manufacturing overhead. i) Administration costs are forecast to be 10% of the cost of goods manufactured for 2002. Marketing costs are forecast to be 12% of sales for 2002. Distribution costs are forecast to be 8% of sales for 2002.

7. Overzicht opgaven (1) Neem aan dat British Beverages de first-in, first-out (FIFO) methode hanteert om de voorraden te bepalen. Bepaal de volgende budgetten aan de hand van de voorgaande data (a t/m i): 1 Revenue budget (in £) 2 Production budget (in units) 3 Direct materials usage budget (in units and £) 4 Direct materials purchase budget (in units and £) 5 Direct manufacturing labour budget 6 Manufacturing overhead costs budget

8. Overzicht opgaven (2) 7 Closing finished goods stock budget 8 Cost of goods sold budget 9 Marketing costs budget 10 Distribution costs budget 11 Administration costs budget 12 Budgeted profit and loss account

9. Uitwerking opgaven

10. 1 Revenue budget Opbrengsten uit verkoop (omzet) LotsSelling priceTotal revenues Lemonade1 080£ 9 000 Diet lemonade540£ 8 500 Total £ 9 720 000 £ 4 590 000 £ 14 310 000

11. 2 Production budget aantal te produceren producten Product LemonadeDiet lemonade Budgetted sales (1)1 080540 Add target closing finished goods stock 2010 Total requirements1100550 Deduct opening finished goods stock 10050 Units (lots) to be produced 1000500

12. 3 Direct materials usage budget gebruik directe materialen (in lots en £) Material Syrup LSyrup DLContain.Packag.Total Direct materials to be used in production of lemonade (1000 lots) 1000 Dir. mat. to be used in production of diet lemonade (500 lots) 500 Total direct materials to be used 10005001500

13. Syrup LSyrup DLContain.Packag.Total Direct mat. to be used from opening stock 8070200400 Multiply by cost per lot of opening stock £ 1 100£ 1 000£ 950£ 900 Cost of direct mat. (A) Dir. mat. To be used from purchases9204301 3001 100 Multiply by cost per lot of purchased mat. £ 1 200£ 1 100£ 1 000£ 800 Cost of direct mat. to be used from purchases (B) Total cost of dir. mat. to be used (A+B) £ 88 000£ 70 000£ 190 000£ 360 000£ 708 000 £ 1 104 000£ 473 000£ 1 300 000£ 880 000£ 3 757 000 £ 1 192 000£ 543 000£ 1 490 000£ 1 240 000£ 4 465 000

14. 4 Direct materials purchases budget aankoop directe materialen (in lots en £) Material Syrup LSyrup DLContain.Packag. Direct mat. to be used in production (lots) 1 0005001 500 Add target closing direct mat. stock (lots) 3020100200 Total req. ment (lots)1 0305201 6001 700 Deduct opening dir. mat. Stock (lots) 8070200400 Direct materials to be purchased (lots) 95045014001300

15. Deze aantallen directe materialen moeten worden vermenigvuldigd met de kosten per lot. Deze zijn: £ 1 200 voor 1 lot syrup lemonade, £ 1 100 voor 1 lot syrup diet lemonade, £ 1 000 voor 1 lot containers en £ 800 voor 1 lot packaging. De antwoorden zijn dus: Syrup L : 950 x £ 1 200 = Syryp DL : 450 x £ 1 100 = Containers :1 400 x £ 1 000 = Packaging:1 300 x £ 800 = Totaal: £ 1 140 000 £ 495 000 £ 1 400 000 £ 1 040 000 £ 4 075 000

16. 5 Direct manufacturing labour budget Kosten van arbeid voor directe productie Output units/lots produced (2) Direct man. facturing lab. hours per unit/lot Total hours Hourly wage rateTotal Lemonade1 0002020 000£ 25 Diet lemonade5002010 000£ 25 Total30 000 £ 500 000 £ 250 000 £ 750 000

17. 6 Manufacturing overhead costs Overige productiekosten At budgeted level of 3000 direct manufacturing labour-hours Variable man. overhead costs units produced: 1 500 lots 2 hours for 1 lot: 3 000 hours £ 600 per hour: £ 1 800 000£ 1 800 000 Fixed manufacturing overhead costs gegeven: £ 1 200 000£ 1 200 000 Total manufacturing overhead costs £ 3 000 000

18. 7 Closing finished goods stock budget Eindvoorraad gereed product Cost / unit of input LemonadeDiet lemonade InputsAmountInputsAmount Syrup L£ 1 2001 Syrup DL£ 1 1001 Containers£ 1 0001 1 Packaging£ 8001 1 Dir man lab£ 2520£ 50020£ 500 Man. overh£ 1 0002£ 20002 Total £ 5500£ 5400

19. Dir. materialsLotsCost per lotTotal costTotal Syrup L30£ 1 200£ 36 000 Syrup DL20£ 1 100£ 22 000 Containers100£ 1 000£ 100 000 Packaging200£ 800£ 160 000 Finished goodsLotsCost per lotTotal cost Lemonade20£ 23 500£ 470 000 Diet lemonade10£ 23 400£ 234 000 Total cl. stock £ 318 000 £ 164 000 £ 482 000

20. 8 Cost of goods sold budget Kosten van de verkochte goederen AmountTotal Opening finished goods stock, 1 January 2002 £ 790 000 Direct materials used (3)£ 4 465 000 Direct manufacturing labour (5)£ 750 000 Manufacturing overhead (6)£ 3 000 000 Cost of goods manufactured£ 8 215 000 Cost of goods available for sale Deduct closing finished goods stock, 31 December 2002 £ 164 000 Cost of goods sold £ 9 005 000 £ 8.841.000

21. 9 Marketing costs budget ‘Marketing costs are forecast to be 12% of sales for 2002’ Kosten voor marketing Sales for 2002 (1): 12 % hiervan is: £ 14 310 000 £ 1 717 200

22. 10 Distribution costs budget Kosten voor distributie ‘Distribution costs are forecast to be 8% of sales for 2002’ Sales for 2002 (1): 8 % hiervan is: £ 14 310 000 £ 1 144 800

23. 11 Administration costs budget Kosten voor distributie ‘Administration costs are forecast to be 10% of the cost of goods manufactured for 2002’ Cost of goods manufactured for 2002 (zie 8): 10 % hiervan is: £ 8 215 000 £ 821 500

24. 12 Budgeted profit and loss account Winst- en verliesrekening AmountTotal Revenues (1)£ 14 310 000 Costs Costs of goods sold (8)£ 8.841.000 Gross margin Operating costs Marketing costs (9)£ 1 717 200 Distribution costs (10)£ 1 144 800 Administration costs (11)£ 821 500 Total Operating profit £ 5.469.000 £ 3 683 500 £ 1.785.500