Department of Accounting & Finance
Project: Master Budget (Sales / Production / RM / Labor / MOH / Selling
& Administrative / Cash budget) for the year 2023 and another Master
Budget for the year 2023
Course Code: ACT202
Section: 14
Submission Date: 27/12/2022
Submitted To
Nushrat Jahan (NUJ)
Submitted By
Name
Md. Abdullah Shikder
Mehedi Islam Fahim
AL – Sadiq Bhuiyan
Dipta Dey
Abir Rahman Adnan
NSU ID
172-1575-030
183-1926-630
192-1205-030
193-1488-630
201-3516-630
Project: Master Budget
Letter of Transmission
April 20, 2022
Nushrat Jahan
Lecturer
Department of Accounting & Finance
North South University
Subject: Report submission on Pizza Stall: Master Budget.
Dear Sir,
We want to inform you that we have completed the report. It’s an excellent opportunity for us to
submit the report on the Master Budget of a pizza stall. You gave some instructions in the class
regarding this topic. We have followed all the instructions. By working on this topic, we have faced
some challenges. At last, we have done this assignment. This assignment allowed us to apply our
theoretical knowledge to the practice area.
So, we are very grateful to you for allowing us to make this report. We hope you will like this report.
Sincerely yours,
Md. Abdullah Shikder - 172-1575-030
Mehedi Islam Fahim - 183-1926-630
AL – Sadiq Bhuiyan - 192-1205-030
Dipta Dey - 193-1488-630
Abir Rahman Adnan - 201-3516-630
Page | 2
Project: Master Budget
Acknowledgement
First of all, we would like to praise Allah the Almighty. We are thankful to our honorable faculty,
“Nushrat Jahan”, who has given his valuable time and instructions to make the report on Pizza Stall:
Master Budget. Without having his instructions, it would be pretty impossible to finish this report. He
guided us with the whole thing regarding our report. We are honored to have him as our faculty.
Executive Summary
Page | 3
Project: Master Budget
This report is about making a master budget for a pizza stall during year 2022 and posts year 2022.
We also have to show up some comparisons between these two years. We made a sales budget, a
production budget, a raw material budget, a labor budget, a manufacturing overhead budget, a selling
& administrative budget, cash budget. We have also shown that the growth rates of 2022 year were
separate.
Table of Content
Page | 4
Project: Master Budget
Contents
No table of contents entries found.
Page | 5
Project: Master Budget
Introduction
Bangladesh’s economy is rapidly growing nowadays. In our country, entrepreneurs are coming up
with new concepts of business. Food restaurants are now making their business successful.
Bangladeshis are more passionate about food. Food is also included in their culture. Pizza is known
for its taste. Pizza stalls are available now. The Pizza Stall we will intervene in is “Pizza Place” it has
existed since 2007 at Rampura, Banasree, Dhaka.
Pizza restaurants are now becoming popular. People are now craving pizza nowadays. There are
many pizza restaurants in Dhaka city. “Pizza Place” is one of them. In Pizza Place, many food items
are available, such as fried chicken, beef/chicken burger, club sandwich, French fries, chicken grill,
beef ressala, noodles, etc. Pizza is one of their regular food items.
We have made two master budgets for “Pizza Place” for the 2022 year and 2022 post year. We have
also shown the calculation of these two years, such as the sales budget, production budget, raw
material budget, labour budget, manufacturing overhead budget, selling & administrative budget, and
cash budget.
Page | 6
Project: Master Budget
Master budget for the year 2022 (Year)
Here we are putting up the master budget for 2022. We built this budget using the same business
ideas they had used in previous years. Most of the information in this master budget came from the
restaurant
Sales Budget (2022)
Sales Budget 2020
Budgeted sales in units
Selling price per unit
Total budgeted sales


Months
Januray February March April
May
June
July
August SeptemberOctober November December Year
992
896
992
0
0
0
992
960
864
992
960
1500
9148
495.0
495
495
495
495
495
495
495
495
495
495
495
491040 443520 491040
0
0
0 491040 475200 427680 491040 475200 742500 4528260
Per pizza selling price was 450 in 2019. Price increases by 10% every year. In 2022, the
selling price will be: 450+(450*10%) = 495
The average sale volume was 30 pizzas per day in 2019. It increases 5% every year. In 2022,
per day sales volume will be: 30+(30*5%) = 31.5 = 32 (rounded)
Production Budget (2022)
Production Budget 2020
Januray February March
April
Budgeted sales in units
992
896
992
Add: Desired ending inventory 89.6
99.2
0
Total need
1081.6
995.2
992
Less: Beginning inventory
99.2
89.6
99.2
Required Production
982.4
905.6
892.8



May
0
0
0
0
0
June
0
0
0
0
0
Months
July
August
SeptemberOctober November December Year
0
992
960
864
992
960
1500
9148
99.2
96
86.4
99.2
96
150
150
99.2
1088
1046.4
963.2
1088
1110
1650
10113.6
0
99.2
96
86.4
99.2
96
150
99.2
988.8
950.4
876.8
988.8
1014
1500
9198.8
Desired beginning and ending inventory are 10% for every month of the budgeted sales for
next month.
Last month’s ending inventory equals next month’s beginning inventory.
Beginning inventory of January is = January budgeted sales*10% = 950*10% = 95
Page | 7
Project: Master Budget
Raw Material Budget (2022)
The Raw Material Budget (2020):
January
Production
982.4
Materials per unit (BDT)
220.5
Production needs in (BDT) 216619.2
Add: Desire ending inventory19756.8
in (BDT)
Total needed
236376
Less: Beginning Inventory in (BDT)
21873.6
Materials to be purchased 214502.4
February March
April
905.6
892.8
220.5
220.5
199684.8 196862.4
21873.6
0
221558.4 196862.4
19756.8 21873.6
201801.6 174988.8
May
0
220.5
0
0
0
0
0
June
0
220.5
0
0
0
0
0
MONTHS
July
August
September October
99.2
988.8
950.4
876.8
988.8
220.5
220.5
220.5
220.5
220.5
21873.6 218030.4 209563.2 193334.4 218030.4
21873.6
21168 19051.2 21873.6
21168
43747.2 239198.4 228614.4 215208 239198.4
0 21873.6
21168 19051.2 21873.6
43747.2 217324.8 207446.4 196156.8 217324.8
November December Year
1014
220.5
223587
33075
256662
21168
235494
1500
9198.8
220.5
330750 2028335.4
33075 212914.8
363825 2241250.2
33075 201713.4
330750 2039536.8
Raw material prices in 2019






Dough=20
Chicken=45
Sauce=20
Cheese=60
Capsicum and Veggies=45
Sausage= 20
Total=210

Raw material cost increases by 5% every year.
So, the raw material price of 2022 will be, 210+(210*5%) = 220.5 = 221(rounded)*
Labor Budget (2022)
The Direct Labor Budget (2020):
MONTHS
January February March
April
May
June
July
August September October November December Year
Unit of production
982.4
905.6
892.8
0
0
99.2
988.8
950.4
876.8
988.8
1014
1500
9198.8
Direct Labor per unit (rounded) 0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
Labor hours required
412.608 380.352 374.976
0
0 41.664 415.296 399.168 368.256 415.296 425.88
630 3863.496
Guaranteed Labor Hour
400
400
400
400
400
400
400
400
400
400
400
400
Labor hours paid
412.608 380.352 374.976
0
0 41.664 415.296 399.168 368.256 415.296 425.88
630 3863.496
Hourly wages rate
46.67
46.67
46.67
46.67
46.67
46.67
46.67
46.67
46.67
46.67
46.67
46.67
Total Direct labor cost
19256.42 17751.03 17500.13
0
0 1944.459 19381.86 18629.17 17186.51 19381.86 19875.82 29402.1 180309.358

Hourly wages rate= Fixed Salary/Labor hours required= 210000/4500= 46.67 (monthly)
Page | 8
Project: Master Budget
Manufacturing Overhead Budget (2022)
Manufacturing Overhead Budget (2020):
MONTHS
January February March
April
May
June
July
August September October November December Year
Budgeted Direct labor hours 412.608 380.352 374.976
0
0 41.664 415.296 399.168 368.256 415.296 425.88
630
Variable Manufacturing overhead
26.75
rate
26.75
26.75
26.75
26.75
26.75
26.75
26.75
26.75
26.75
26.75
26.75
Variable MOH cost
11037.26 10174.42 10030.61
0
0 1114.512 11109.17 10677.74 9850.848 11109.17 11392.29 16852.5
Fixed Manufacturing Overhead cost
4815
4815
4815
4815
4815
4815
4815
4815
4815
4815
4815
4815
Cash Disbursement for Manufacturing
15852.26 14989.42
Overhead 14845.61
4815
4815 5929.512 15924.17 15492.74 14665.85 15924.17 16207.29 21667.5


In 2019, Variable MOH was 25
In 2022, it will increase by 7% and the variable MOH will be= 25+(25*7%) = 26.75
The fixed MOH of 2019 was 4500
In 2022, it will be = 4500+(4500*7%) = 4815
Selling and Administrative Budget (2022)
Selling and administrative Budget (2020):
January February March
Budgeted Sales
992
896
Variable selling and administrative expense
3
3
Variable expenses
2976
2688
Fixed Selling and administrative10000
expense 10000
Total selling and administrative 12976
expenses 12688
Less: Non-cash expenses
500
500
Cash Selling and administrative12476
expense 12188




992
3
2976
10000
12976
500
12476
April
0
3
0
10000
10000
500
9500
May
0
3
0
10000
10000
500
9500
June
0
3
0
10000
10000
500
9500
MONTHS
July
August
992
3
2976
10000
12976
500
12476
960
3
2880
10000
12880
500
12380
September October
864
3
2592
10000
12592
500
12092
992
3
2976
10000
12976
500
12476
November December Year
960
3
2880
10000
12880
500
12380
1500
3
4500
10000
14500
500
14000
In 2019, the variable selling, and administrative expense rate were 2.90 per pizza. It increases
yearly by 2%.
In 2022, the rate will be = 2.90+(2.90*2%) = 2.958 = 3 (rounded)
Monthly fixed selling and administrative expense = Grease payment + rent + utility +
Depreciation = 1000+8000+4000+500= 13500
Fixed selling and administrative expenses yearly increase by 2%.
In 2022, the fixed selling and administrative cost will be = 13500+(13500*2%) = 13770
Non-cash selling and administrative expenses were 490 in 2019.
It increases by 2% and it will be 490+(490*2%) = 499.8= 500 (rounded) in 2022.
Page | 9
9148
27444
147444
141444
Project: Master Budget
Cash Budget (2022)
The Cash Budget (2020):
Beginning cash balance
Add: Cash collections
Total cash available
Less: Cash Disbursement
Materials
Direct Labor
Manufacturing Overhead
Selling and Administrative
Equipment Purchase
Total Disbursement
Excess or (deficiency)
Financing:
Borrowing
Repayments
Interest
Total Financing
Ending cash Balance


January February March
April
May
June
July
August September October November December Year
30000 263209.3 462750.3 736479.9 707164.9 677849.9 603673.2 833988.2 1058869 1248634 1478949 1675068 9776637.01
491040 443520 491040
0
0
0 491040 475200 427680 491040 475200 742500 4528260
521040 706729.3 953790.3 736479.9 707164.9 677849.9 1094713 1309188 1486549 1739674 1954149 2417568 14304897
214502.4
15000
15852.26
12476
0
257830.7
263209.3
0
0
0
0
0
263209.3
201801.6
15000
14989.42
12188
0
243979
462750.3
0
0
0
0
0
462750.3
174988.8
0
0
15000
15000
15000
14845.61
4815
4815
12476
9500
9500
0
0
0
217310.4
29315
29315
736479.9 707164.9 677849.9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
736479.9 707164.9 677849.9
43747.2
15000
5929.512
9500
0
74176.71
603673.2
0
0
0
0
0
603673.2
217324.8
15000
15924.17
12476
0
260725
833988.2
0
0
0
0
0
833988.2
207446.4
15000
15492.74
12380
0
250319.1
1058869
0
0
0
0
0
1058869
196156.8
15000
14665.85
12092
0
237914.6
1248634
0
0
0
0
0
1248634
217324.8
15000
15924.17
12476
0
260725
1478949
0
0
0
0
0
1478949
235494 330750 2039536.8
15000
15000
180000
16207.29 21667.5 161128.518
12380
14000
141444
0
0
279081.3 381417.5 2522109.32
1675068 2036151 11782787.7
0
0
0
0
0
0
0
0
0
0
1675068 2036151 11782787.7
The beginning cash balance in 2022 is 30000.
Direct labor cost is 15000tk.
Page | 10
Project: Master Budget
Master budget for the year 2022 (Post- Year)
Here we are putting up the master budget for 2022. We built this budget using the same business
ideas they had used in previous years. Most of the information in this master budget came from the
restaurant, and we also included some information from 2019 (which was provided in our Group
Project Outline).
Sales Budget (2022)
Sales Budget 2021
Budgeted sales in units
Selling price per unit
Total budgeted sales


Months
Januray February March April
May
June
July
August SeptemberOctober November December Year
1041.6
940.8 1041.6
0
0
0 1041.6
1008
907.2 1041.6
1008
1575 9605.4
544.5
544.5
544.5
544.5
544.5
544.5
544.5
544.5
544.5
544.5
544.5
544.5
567151.2 512265.6 567151.2
0
0
0 567151.2 548856 493970.4 567151.2 548856 857587.5 5230140
Per pizza selling price was 450 in 2019. Price increases by 10% every year. In 2022, the
selling price will be: 544+(544*10%) = 598
The average sell volume was 30 pizzas per day in 2019. It increases 5% every year. In 2022,
per day sales volume will be: 32+(32*5%) = 33.6 = 34 (rounded)
Production Budget (2022)
Production Budget 2021
Budgeted sales in units
Add: Desired ending inventory
Total need
Less: Beginning inventory
Required Production


Januray February March April
1041.6
940.8 1041.6
94.08 104.16
0
1135.68 1044.96 1041.6
104.16
94.08 104.16
1031.52 950.88 937.44
May
0
0
0
0
0
Months
July
August SeptemberOctober November December Year
0 1041.6
1008
907.2 1041.6
1008
1575 9605.4
104.16
100.8
90.72 104.16
100.8
157.5
150
104.16 1142.4 1098.72 1011.36 1142.4 1165.5
1725 10611.78
0 104.16
100.8
90.72 104.16
100.8
157.5
104.16 1038.24 997.92 920.64 1038.24 1064.7 1567.5 9651.24
June
0
0
0
0
0
Desired beginning and ending inventory is 10% for every month of the budgeted sales for
next month.
Last month’s ending inventory equals next month’s beginning inventory. Beginning inventory
of January is= January budgeted sales*10% = 1041.6*10% = 104
Page | 11
Project: Master Budget
Raw Material Budget (2022)
The Raw Material Budget (2021):
January February March
Production
Materials per unit (BDT)
Production needs in (BDT)
Add: Desire ending inventory in (BDT)
Total needed
Less: Beginning Inventory in (BDT)
Materials to be purchased
1031.52
231.525
238822.7
21781.87
260604.5
24115.64
236488.9
950.88
231.525
220152.5
24115.64
244268.1
21781.87
222486.3
April
May
June
MONTHS
July
August
SeptemberOctober November December Year
937.44
0
0 104.16 1038.24 997.92 920.64 1038.24
231.525 231.525 231.525 231.525 231.525 231.525 231.525 231.525
217040.8
0
0 24115.64 240378.5 231043.4 213151.2 240378.5
0
0
0 24115.64 23337.72 21003.95 24115.64 23337.72
217040.8
0
0 48231.29 263716.2 252047.4 237266.8 263716.2
24115.64
0
0
0 24115.64 23337.72 21003.95 24115.64
192925.2
0
0 48231.29 239600.6 228709.7 216262.9 239600.6
1064.7
231.525
246504.7
36465.19
282969.9
23337.72
259632.1
1567.5
231.525
362915.4
34728.75
397644.2
36465.19
361179
9651.24
2234503
233002.1
2467505
222389
2245116
Raw material prices in 2022






Dough=20
Chicken=45
Sauce=20
Cheese=60
Capsicum and Veggies=45
Sausage= 20
Total from 2022 was = 221

Raw material cost increases by 5% every year. So, the raw material price of 2022 will
be,221+(221*5%) = 232.5= 233 (rounded)*
Labor Budget (2022)
The Direct Labor Budget (2021):
Unit of production
Direct Labor per unit (rounded)
Labor hours required
Guaranteed Labor Hour
Labor hours paid
Hourly wages rate
Total Direct labor cost

MONTHS
January February March April
May
June
July
August SeptemberOctober November December Year
1031.52 950.88 937.44
0
0 104.16 1038.24 997.92 920.64 1038.24 1064.7 1567.5 9651.24
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
0.42
433.2384 399.3696 393.7248
0
0 43.7472 436.0608 419.1264 386.6688 436.0608 447.174 658.35 4053.521
400
400
400
400
400
400
400
400
400
400
400
400
433.2384 399.3696 393.7248
0
0 43.7472 436.0608 419.1264 386.6688 436.0608 447.174 658.35 4053.521
48.0701 48.0701 48.0701 48.0701 48.0701 48.0701 48.0701 48.0701 48.0701 48.0701 48.0701 48.0701
20825.81 19197.74 18926.39
0
0 2102.932 20961.49 20147.45 18587.21 20961.49 21495.7 31646.95 194853.2
Hourly wages rate= Fixed Salary/Labor hours required= 194853/4053= 48.07(monthly)*
Page | 12
Project: Master Budget
Manufacturing Overhead Budget (2022)
Manufacturing Overhead Budget (2021):
MONTHS
January February March April
May
June
July
August SeptemberOctober November December Year
Budgeted Direct labor hours
433.2384 399.3696 393.7248
0
0 43.7472 436.0608 419.1264 386.6688 436.0608 447.174 658.35
Variable Manufacturing overhead rate
28.6225 28.6225 28.6225 28.6225 28.6225 28.6225 28.6225 28.6225 28.6225 28.6225 28.6225 28.6225
Variable MOH cost
12400.37 11430.96 11269.39
0
0 1252.154 12481.15 11996.45 11067.43 12481.15 12799.24 18843.62
Fixed Manufacturing Overhead cost
4815
4815
4815
4815
4815
4815
4815
4815
4815
4815
4815
4815
Cash Disbursement for Manufacturing Overhead
17215.37 16245.96 16084.39
4815
4815 6067.154 17296.15 16811.45 15882.43 17296.15 17614.24 23658.62


In 2022, Variable MOH was 25
In 2022, it will increase by 7% and the variable MOH will be= 28+(28*7%) = 29.96
The fixed MOH of 2022 was 4500
In 2022, it will be = 4500+(4500*7%) = 4815
Selling and Administrative Budget (2022)
Selling and administrative Budget (2021):
January
February March
Budgeted Sales
1041.6
940.8
1041.6
Variable selling and administrative expense
3.06
3.06
3.06
Variable expenses
3187.296 2878.848 3187.296
Fixed Selling and administrative expense
10000
10000
10000
Total selling and administrative expenses 13187.3 12878.85 13187.3
Less: Non-cash expenses
500
500
500
Cash Selling and administrative expense 12687.3 12378.85 12687.3



April
0
3.06
0
10000
10000
500
9500
May
0
3.06
0
10000
10000
500
9500
June
MONTHS
July
August
SeptemberOctober November December Year
0
1041.6
1008
907.2
1041.6
1008
3.06
3.06
3.06
3.06
3.06
3.06
0 3187.296 3084.48 2776.032 3187.296 3084.48
10000
10000
10000
10000
10000
10000
10000 13187.3 13084.48 12776.03 13187.3 13084.48
500
500
500
500
500
500
9500 12687.3 12584.48 12276.03 12687.3 12584.48
1575
9605.4
3.06
4819.5 29392.52
10000
14819.5 149392.5
500
14319.5 143392.5
In 2022, the variable selling, and administrative expense rate was 2.90 per pizza. It increases
yearly by 2%.
In 2022, the rate will be= 2.90+(2.90*2%) = 2.958 = 3 (rounded)
Monthly fixed selling and administrative expense = Grease payment + rent + utility +
Depreciation = 1000+8000+4000+500= 13500
Fixed selling and administrative expense yearly increase by 2%, so in 2022, the fixed selling
and administrative fee will be= 13500+(13500*2%) = 13770
Non-cash selling and administrative expenses were 490 in 2022 It increases by 2% and
it will be 490+(490*2%) = 499.8= 500 (rounded) in 2022.
Page | 13
Project: Master Budget
Cash Budget (2022)
The Cash Budget (2021):
Beginning cash balance
Add: Cash collections
Total cash available
Less: Cash Disbursement
Materials
Direct Labor
Manufacturing Overhead
Selling and Administrative
Equipment Purchase
Total Disbursement
Excess or (deficiency)
Financing:
Borrowing
Repayments
Interest
Total Financing
Ending cash Balance


January February March
April
May
June
July
August
SeptemberOctober November December Year
1798961 2084721 2330875 2661329 2632014 2602699 2523901 2806468 3082219 3316768 3599335 3843360 33282650
567151.2 512265.6 567151.2
0
0
0 567151.2 548856 493970.4 567151.2 548856 857587.5 5230140
2366112 2596986 2898026 2661329 2632014 2602699 3091052 3355324 3576189 3883919 4148191 4700947 38512790
236488.9
15000
17215.37
12687.3
0
281391.6
2084721
0
0
0
0
0
2084721
222486.3
15000
16245.96
12378.85
0
266111.1
2330875
0
0
0
0
0
2330875
192925.2
0
0
15000
15000
15000
16084.39
4815
4815
12687.3
9500
9500
0
0
0
236696.8
29315
29315
2661329 2632014 2602699
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2661329 2632014 2602699
48231.29
15000
6067.154
9500
0
78798.44
2523901
0
0
0
0
0
2523901
239600.6
15000
17296.15
12687.3
0
284584
2806468
0
0
0
0
0
2806468
228709.7
15000
16811.45
12584.48
0
273105.6
3082219
0
0
0
0
0
3082219
216262.9
15000
15882.43
12276.03
0
259421.3
3316768
0
0
0
0
0
3316768
239600.6
15000
17296.15
12687.3
0
284584
3599335
0
0
0
0
0
3599335
259632.1
15000
17614.24
12584.48
0
304830.9
3843360
0
0
0
0
0
3843360
361179
15000
23658.62
14319.5
0
414157.1
4286790
0
0
0
0
0
4286790
2245116
180000
173801.9
143392.5
2742311
35770479
35770479
The beginning cash balance in 2022 is 30000.
Direct labour cost is 15000tk.
Page | 14
Project: Master Budget
Conclusion
Our group made the master budget for the years 2021 and 2022. 2021 was the year
on the other hand, 2022 was the post-pandemic year. We made seven budgets for both the
years, which include the Sales budget, Production budget, Raw material budget, Labor budget,
Manufacturing Overhead Budget, Selling and Administrative Budget, and lastly, the Cash budget.
By making the budgets, we have found some differences in both years.
Coronavirus has impacted the businesses' sales, production, and expenses. In 2022 our total sales
were 19253 burgers or 5544864 (BDT), but for the corona pandemic in 2022, it decreased and
became 15628 burgers or 5172868 (BDT). So, we can say 371999 (BDT) sales fell in
2022. If we investigated our production in 201,9, our production was 19262 burgers, but in 2022, it
dropped and bebecame5673. Our raw materials cost, direct labor and other prices increased in
2022. Besides the fees, Cafe login had to buy equipment and cope with
The coronavirus pandemic; required some extra costs. We can see in 2022; the ending cash
balance increased more than in 2019. We cannot be happy about that or cannot say the business did
well in
2022 because there is a reason behind that. The ending cash balance of 2022 was 3853539. On the
Other, the ending cash balance of 2019 was 2185920. The reason behind this is the ending cash
balance of 2019 is the beginning cash balance of 2022. In 2019 the beginning cash balance was
only 15000, which means in 2019, the cash increased (2185920-15000) 2170920 BDT but in 2022
the beginning cash balance was 2185920, so the incensement was (3853539 - 2185920) =
1667619.
So, by this, we can say the incensement is less than 2022 by this, we can conclude that 2022 the
year was not good for the business we chose.
Page | 15
Project: Master Budget
Picture of the restaurant brochure
Page | 16