Direct Materials Costing

Banana Cheese Balls

Banana Cheese Balls Quantity Q Price
Banana (Cardava) 5 kg 60 85.00(17*5)
All-purpose flour 1/4 kg/2 cups 1 15
Eden Cheese 165 g/60 cubes 5 275
Brown sugar 1/2 kg/40 tbsp 1 38.75
Water 1 gallon/16 cups 1 25
Bread crumbs 230 g/3.83 cups 2 80.6
Oil(for frying) 1/2 kg/2/3 cups 1 60.05
Vanilla syrup 20 ml/3 tsp 1 39.65
Siomai cup 1 pck./50 pcs. 6 117
Toothpick 1 pck./100 pcs. 3 45
TOTAL 781.05

DM+DL+OH
2.22+0.33+0.17
2.72 (Price per unit) 7.00 (Selling price) 4.28 (Mark up)

Computations:
Direct labor = 100/300= 0.33
Overhead = 0.33/2= 0.17
Expected Units to Produce Cost Per Product Output
300 0.28
600 0.03
300 0.92
600 0.06
1,500 0.02
600 0.13
300 0.2
900 0.04
300 0.39
300 0.15
5,700 2.22
 CLASSYLICIOUS
Product cost

2023 2024 2025

Fixed Investment
Property, Plant and Equipments ₱3,702 3,702 3,702
Furnitures & Fixtures 1,080 1,080 1,080
Total Fixed Investment 4,782 4,782 4,782

Pre-operating Expense
Promotional Activities ₱2,350 2,350 2,350
Total Operating Expense 2,350 2,350 2,350

Initial Working Capital

Raw Materials ₱203,073 219,319 236,864
Supplies Expense 6,830 6,830 6,830
Salaries Expense 104,000 104,000 104,000
Partner's Contribution 24,000 24,000 24,000
Total Initial Working Capital 337,903 254,149 271,694

TOTAL PRODUCT COST ₱345,035 261,281 278,826

2026 2027

3,702 3,702
1,080 1,080
4,782 4,782

2,350 2,350
2,350 2,350

255,813 276,278
6,830 6,830
104,000 104,000
24,000 24,000
390,643 411,108

397,775 418,240
 PROFIT MARGIN NET INCOME/NET SALES

RETURN ON INVESTMENT NET INCOME/PARTNER'S CONTRIBUTION

RETURN ON EQUITY NET SALES/TOTAL ASSETS

RETURN ON ASSETS NET SALES/TOTAL ASSETS

FIXED ASSET TURNOVER GROSS PROFIT/NON-CURRENT ASSETS

TOTAL ASSETS TURNOVER GROSS PROFIT/TOTAL ASSETS

 FINANCIAL RATIOS

2023 2024 2025 2026

29.60% 33.40% 36.90% 40.10%

2023 2024 2025 2026

731.10% 906.20% 1100.50% 1316.20%

2023 2024 2025 2026

302.70% 157.30% 105.50% 79.10%

2023 2024 2025 2026

302.70% 157.30% 105.50% 79.10%

8105.80% 12307.50% 20946.10% 47427.30%

2023 2024 2025 2026

158.50% 85.30% 59.00% 45.50%

 2027

43.10%

2027

1556.30%

2027

63.30%

2027

63.30%

2027

37.40%
 CLASSYLICIOUS
Projected Statement of Partner's Equity
As of December 31, 2023 to 2027
(In Philippine Peso)

2023 2024 2025 2026 2027

Partner's Equity
Capital 24,000 199,469 416,955 681,082 996,959
Net Income 175,469 217,486 264,127 315,877 373,278
Additional Investment 0 0 0 0 0
Withdrawals 0 0 0 0 0
Total Partner's Equity 199,469 416,955 681,082 996,959 1,370,237
 Financial Assumptions
1. The calendar year period will be used.
2. Year 2023 is the start of business operations.
3. Demand increases 10% per year.
4. Sales increases 10% per year.
Projected Demand and Sales

Demand
Banana Cheese Balls
Total

Sales
Banana Cheese Balls
Total

5. Depreciation expense is computed using the straight-line method with an estimated useful life of 5 years.

Depreciation Expense
Estimated Depreciation
Item Cost Useful life
Property, Plant, and Equipment ₱3,702.00 5
Furnitures & Fixtures 1080 5

Total ₱4,782.00

6. No receivables at the end of the year.

7. No accounts payable at the end of the year.
8. No supplies are left for the year. Supplies are expensed outright.
9. Raw materials increase by 8% due to inflation rate.

Purchase of raw materials

10. No withdrawals will be made for 5 years.

11. The entity runs as a general partnership.
12. The entity collects orders and sells on Monday, Tuesday, Friday, and Saturday
13. The entity runs from Monday to Saturday, except Wednesday due to the owner's hectic schedules.
14. Three personnels were assigned to provide selling strategies, giving the exact amount of orders, and they're oblige
15. The owners were the ones who will directly do the production of the product and it is on their working schedule.
16. The inventory will take place during the working days of Tuesday, Friday, and Saturday.
17. All sales are in cash.
18. All direct materials are assumed to be sold at the end of the year.
19. After the completion, the entity will distribute the 8.33% of share among the 8 partners' while the remaining 4 par
 CLASSYLICIOUS
Financial Assumptions

Projected Demand and Sales

2023 2024 2025 2026 2027

78,000 85,800 94,380 103,818 114,200

78,000 85,800 94,380 103,818 114,200

592,200 651,420 716,562 788,218 867,040

592,200 651,420 716,562 788,218 867,040

imated useful life of 5 years.

Depreciation Expense
Estimated Depreciation
2023 2024 2025 2026 2027
740.4 1,488.08 2,221 2,961.60 3702
216 432 648 864 1080

956.4 1,912.80 2,869.20 3,825.60 4,782

2023 2024 2025 2026 2027

203,073 219,319 236,864 255,813 276,278

wner's hectic schedules.

ct amount of orders, and they're obliged to answer the customer's queries.
ct and it is on their working schedule.
and Saturday.

e 8 partners' while the remaining 4 partners' will receive their 8.34% of shares.
 Banana Cheese Balls
Budgeted Sales
For the year ended December 31,2023
(In Philippine Peso)
QTY. TO BE
QTY. TO BE
NO. OF DAYS SOLD PER
SOLD PER DAY
MONTH
JANUARY 22 300 6,600
FEBRUARY 20 300 6,000
MARCH 22 300 6,600
APRIL 21 300 6,300
MAY 22 300 6,600
JUNE 22 300 6,600
JULY 22 300 6,000
AUGUST 22 300 6,600
SEPTEMBER 22 300 6,600
OCTOBER 22 300 6,600
NOVEMBER 21 300 6,300
DECEMBER 22 300 6,600
TOTAL SALES IN 12
= 592,200
MONTHS
 TOTAL SALES
UNIT PRICE
PER MONTH

7 46,200
7 42,000
7 46,200
7 44,100
7 46,200
7 46,200
7 46,200
7 46,200
7 46,200
7 46,200
7 44,100
7 46,200
 CLASSYLICIOUS
Projected Income Statement
For the five years ended December 31, 2027
(In Phililippine Peso)

2023 2024

Sales 592,200 651,420

Less: Costs of Goods Sold 282,073 298,319
Gross Profit 310,127 353,101

Operating Expense
Salaries expense 104,000 104,000
Promotional Expense 2,350 2,350
Gas Expense 6,522 6,522
Utility Expense 12,000 12,000
Layout Expense 2,000 2,000
Depreciation Expense 956.4 1,913
Supplies Expense 6,830 6,830
Total Operating Expense 134,658.40 135,615

NET INCOME 175,469 217,486

 CLASSYLICIOUS
jected Income Statement
years ended December 31, 2027
(In Phililippine Peso)

2025 2026 2027

716,562 788,218 867,040

315,864 334,813 355,278
400,698 453,405 511,762

104,000 104,000 104,000

2,350 2,350 2,350
6,522 6,522 6,522
12,000 12,000 12,000
2,000 2,000 2,000
2,869 3,826 4,782
6,830 6,830 6,830
136,571 137,528 138,484

264,127 315,877 373,278

 CLASSYLICIOUS
Projected Statement of Balance Sheet
As of December 31, 2023 to 2027
(In Philippine Peso)
2023 2024 2025
ASSETS
CURRENT ASSETS
Cash 195,643 414,086 679,169
Total Current Assets 195,643 414,086 679,169

NON-CURRENT ASSETS
Property, Plant and Equipment 3,702 3,702 3,702
Furnitures & Fixtures 1,080 1,080 1,080
Total 4,782 4,782 4,782
Less: Accumulated Depreciation -956.4 -1,913 -2,869
Total Non-current Assets 3,826 2,869 1,913

TOTAL ASSETS ₱199,469 ₱416,955 ₱681,082

LIABILITIES AND EQUITY

CURRENT LIABILITIES 0 0 0

EQUITY
Partners' Contribution 24,000 199,469 416,955
Add: Net Income 175,469 217,486 264,127

TOTAL LIABILITIES AND EQUITY, END ₱199,469 ₱416,955 ₱681,082

 2026 2027

996,003 1,370,237
996,003 1,370,237

3,702 3,702
1,080 1,080
4,782 4,782
-3,826 -4,782
956 0

₱996,959 ₱1,370,237

0 0

681,082 996,958
315,877 373,278

₱996,959 ₱1,370,237
 CLASSYLICIOUS
Projected Statement of Cash Flow
For the years ended December 31, 2023 to 2027
(In Philippine Peso)
2023 2024 2025 2026 2027
CASH FLOW
Cash, Beginning 0 195,643 414,086 679,169 996,003
Partners' Contribution 24,000 0 0 0 0
Sales 592,200 651,420 716,562 788,218 867,040
Total cash flow 616,200 847,063 1,130,648 1,467,387 1,863,043
Less: Cash Outflows
Property, Plant and Equipment 3,702 740 1,481 2,221 2,962
Furnitures & Fixtures 1,080 216 432 648 864
Purchase of Raw Materials 203,073 219,319 236,864 255,813 276,278
Packaging 1,000 1,000 1,000 1,000 1,000
Direct labor 78,000 78,000 78,000 78,000 78,000
Salaries Expense 104,000 104,000 104,000 104,000 104,000
Promotional Expense 2,350 2,350 2,350 2,350 2,350
Gas Expense 6,522 6,522 6,522 6,522 6,522
Utility Expense 12,000 12,000 12,000 12,000 12,000
Layout Expense 2,000 2,000 2,000 2,000 2,000
Supplies Expense 6,830 6,830 6,830 6,830 6,830
Total Operating Expense 420,557 432,977 451,479 471,384 492,806

Cash Balance, End 195,643 414,086 679,169 996,003 1,370,237

 CLASSYLICIOUS
Projected Cost of Goods Sold
For the years ended December 31, 2023 to 2027
(In Philippine Peso)
2023 2024 2025 2026 2027
Cost of Goods Sold
Beginning Inventory 0 0 0 0 0
Add:
Purchase of Raw Materials 203,073 219,319 236,864 255,813 276,278
Direct labor 78,000 78,000 78,000 78,000 78,000
Overhead:
Packaging 1,000 1,000 1,000 1,000 1,000
Cost of Goods Sold 282,073 298,319 315,864 334,813 355,278
 Cooking and Equipment Machinery
ITEMS COST USEFUL LIFE
Apron 150 5
Plastic Gloves 50 5
Hairnet 15 5
Measuring cups 150 5
Plastic container 95 5
Mixing bowl 120 5
Knife 75 5
Spoon 60 5
Power kalan 1,877 5
Frying pan 450 5
Smasher 150 5
Strainer 200 5
Tong 120 5
Tupperware 190 5

STALL COST USEFUL LIFE

Furnitures & Fixtures 1,080 5
ANNUAL DEPRECIATION
30
10
2.4
30
19
24
15
12
375.4
90
30
40
24
38

ANNUAL DEPRECIATION
216