Product Costing

Graham Balls
Ingredients Price Quantity Cost per Order
Crushed Grahams 38 30 1.27
Condensed Milk 43.5 30 1.45
Sprinkles 35 125 0.28
Cupcake Liners 200 500 0.40
3.40

Price 7
Cost 3.40
Mark-Up 3.60
 Product Costing
Pastillas
Ingredients Price Quantity Cost per Order
Powdered Milk 257 160 1.61
Condensed Milk 43.5 160 0.27
Electricity Consumption 100 1111 0.09
Cupcake Liners 200 500 0.40
Sugar 15.5 500 0.03
2.40

Price 5
Cost 2.40
Mark-Up 2.60
 Product Costing
Oreo Balls
Ingredients Price Quantity Cost per Order
Oreo 38.25 16 2.39
Cream Cheese 94 23 4.09
White Chocolate 105 75 1.40
Electricity Consumption 100 833 0.12
Cupcake Liners 200 500 0.4
8.40

Price 15
Cost 8.40
Mark-Up 6.60
 Product Costing
Brownie Crisps
Ingredients Price Quantity Cost per Order
Egg 80 12 6.67
White Sugar 15.5 9 1.72
Cooking Oil 59 20 2.95
Vanilla Extract 38.5 30 1.28
Unsweetened Cocoa Powder 469.5 30 15.65
All Purpose Flour 80.25 30 2.68
Baking Soda 27.5 50 0.55
Salt 25.25 100 0.25
Semi-Sweet Chocolate Chip 105 25 4.2
Gas 580 290 2
Container 5 1 5
Water 22 30 0.73
43.68

Price 70
Cost 43.68
Mark-Up 26.32
 Marketing Budget Summary
Local Marketing
Pamphlets 25.0% 2,500.00
Free Taste 60.0% 6,000.00
Flyers 10.0% 1,000.00
Online Page 5.0% 500.00
Total 100.0% 10,000.00
 Graham Balls Pastillas
Cost of Sales Cost of Sales
Unit Cost Quantity Total Cost Unit Cost Quantity
2020 3.4 7300 24820 2020 2.4 7300
2021 3.4 9125 31025 2021 2.4 9125
2022 3.4 10950 37230 2022 2.4 10950

Graham Balls Pastillas

Sales Forecast Sales Forecast
Price Quantity Total Sales Price Quantity
2020 7 7300 51100 2020 5 7300
2021 7 9125 63875 2021 5 9125
2022 7 10950 76650 2022 5 10950
tillas Oreo Balls
f Sales Cost of Sales
Total Cost Unit Cost Quantity Total Cost
17520 2020 8.4 7300 61320
21900 2021 8.4 9125 76650
26280 2022 8.4 10950 91980

tillas Oreo Balls

Forecast Sales Forecast
Total Sales Price Quantity Total Sales
36500 2020 15 7300 109500
45625 2021 15 9125 136875
54750 2022 15 10950 164250
 Brownie Chips
Cost of Sales
Unit Cost Quantity Total Cost
2020 43.68 3650 159432 263,092.00
2021 43.68 7300 318864 448,439.00
2022 43.68 10950 478296 633,786.00

Brownie Chips
Sales Forecast
Price Quantity Total Sales
2020 70 3650 255500 452,600.00
2021 70 7300 511000 757,375.00
2022 70 10950 766500 1,062,150.00
 Budgeted Statement of Cost of Sales
2020 2021 2022
Beginning Inventory - 11,144.00 9,956.00
Purchases 274,236.00 447,251.00 632,558.00
Total 274,236.00 458,395.00 642,514.00
Less: Ending Inventory 11,144.00 9,956.00 8,728.00
Cost of Sales 263,092.00 448,439.00 633,786.00

263,092.00 448,439.00 633,786.00

 Projected Income Statement
2020 2021 2022
Sales Revenue
Graham Balls 51,100.00 63,875.00 76,650.00
Pastillas 36,500.00 45,625.00 54,750.00
Oreo Balls 109,500.00 136,875.00 164,250.00
Brownie Crisps 255,500.00 511,000.00 766,500.00
Total Sales 452,600.00 757,375.00 1,062,150.00
Less: Cost of Sales
Graham Balls 24,820.00 31,025.00 37,230.00
Pastillas 17,520.00 21,900.00 26,280.00
Oreo Balls 61,320.00 76,650.00 91,980.00
Brownie Crisps 159,432.00 318,864.00 478,296.00
Total Cost of Sales 263,092.00 448,439.00 633,786.00
Gross Profit 189,508.00 308,936.00 428,364.00
Less: Operating Expenses
Rent Expense 18,000.00 18,000.00 18,000.00
Salaries Expense 122,000.00 122,000.00 122,000.00
Utility Expense 2,000.00 2,000.00 2,000.00
Legal Expense 3,500.00 2,000.00 2,000.00
Marketing and Advertising Expense 7,000.00 4,000.00 4,000.00
Depreciation Expense 1,199.70 1,199.70 1,199.70
Total Operating Expense 153,699.70 149,199.70 149,199.70
Net Income before Tax 35,808.30 159,736.30 279,164.30
Income Tax 10,742.49 47,920.89 83,749.29
Net Income after Tax 25,065.81 111,815.41 195,415.01
 Projected Statement of Changes in Equity
2020 2021 2022
Beginning Balance 40,000.00 45,065.81 46,881.22
Add: Net Income after Tax 25,065.81 111,815.41 195,415.01
Total 65,065.81 156,881.22 242,296.23
Less: Withdrawal 20,000.00 110,000.00 190,000.00
Ending Balance 45,065.81 46,881.22 52,296.23
 Projected Statement of Cash Flows
2020 2021
Cash Flows from Operating Activities
Cash inflows from customers 452,600.00 757,375.00
Cash paid to suppliers - 274,236.00 - 447,251.00
Cash paid for rent - 18,000.00 - 18,000.00
Cash paid for utilities - 2,000.00 - 2,000.00
Cash paid for legal - 3,500.00 - 2,000.00
Cash paid for marketing - 7,000.00 - 4,000.00
Cash paid for salaries - 122,000.00 - 122,000.00
Cash paid for income tax - 10,742.49
Net cash flows from operating activities 25,864.00 151,381.51

Cash Flows from Investing Activities

Cash paid for machineries and equipment - 27,240.00
Cash paid for kitchen utensils - 2,128.00
Net cash flows from investing activities - 29,368.00

Cash Flow from Financing Activities

Cash received from owner 40,000.00

Cash withdrawn by owner - 20,000.00 - 110,000.00
Net cash provided by financing activities 20,000.00 - 110,000.00

Net Cash Flows 16,496.00 41,381.51

Add: Cash beginning balance - 16,496.00
Cash, Ending Balance 16,496.00 57,877.51
 Projected Statement of Financial Position
2022 2020
Assets
1,062,150.00 Current Assets
- 632,558.00 Cash 16,496.00
- 18,000.00 Inventory 11,144.00
- 2,000.00 Total Current Assets 27,640.00
- 2,000.00
- 4,000.00 Noncurrent Assets
- 122,000.00 Utensils, Machinery, and Equipment (Net) 28,168.30
- 47,920.89
233,671.11 Total Assets 55,808.30

Liabilities and Equity

Current Liabilities
Income Tax Payable 10,742.49

Equity
Owner's Capital 45,065.81

- 190,000.00 Total Liabilities and Equity 55,808.30

- 190,000.00

43,671.11
57,877.51
101,548.62
inancial Position Return on Investment
2021 2022 2020
Beginning Balance 40,000.00
Add: Ending Balance 45,065.81
57,877.51 101,548.62 Total 85,065.81
9,956.00 8,728.00 Divided by 2
67,833.51 110,276.62 Average Equity 42,532.91
Net Income 25,065.81
Return on Investment 59%
26,968.60 25,768.90

94,802.11 136,045.52

47,920.89 83,749.29

46,881.22 52,296.23

94,802.11 136,045.52
urn on Investment Profit Ratio
2021 2022 2020
45,065.81 46,881.22 Net Income 25,065.81
46,881.22 52,296.23 Sales Revenue 452,600.00
91,947.03 99,177.45 Profit Ratio 6%
2 2
45,973.52 49,588.73
111,815.41 195,415.01
243% 394%
Profit Ratio Payback Period
2021 2022
111,815.41 195,415.01 Investment
757,375.00 1,062,150.00 Less: Net Income for Year 1
15% 18% Difference
Less: Net Income for Year 2
Difference
Divided by: Net Income for Year 3
Percentage of Balance for Year 3
Multiply to 12 months
Equivalent Month of Remaining Balance
Payback Period
Payback Period
Payback (Months)
40,000.00
25,065.81
14,934.19 12.00
111,815.41
- 96,881.22
195,415.01
0.50
12.00
5.95 6.00
18 months
 Year 1 Year 2
Cost Life Salvage Accum Depr Carrying Amt Accum Depr
Cash Register 7,400.00 20 740.00 333 7,067.00 666
Gas Stove 17,160.00 20 1,716.00 772.2 16,387.80 1544.4
Electric Stand Mixer 2,100.00 20 210.00 94.5 2,005.50 189

Total 26,660.00 1199.7 25,460.30 2399.4

Year 2 Year 3
Carrying Amt Accum Depr Carrying Amt
6,734.00 999 6,401.00
15,615.60 2316.6 14,843.40
1,911.00 283.5 1,816.50

24,260.60 3599.1 23,060.90

Cash 40,000.00
Owners Equity 40,000.00

Machineries & Equipment 27,240.00

Cash 27,240.00

Kitchen Utensils 2,128.00

Cash 2,128.00

Inventory 299,786.00
Cash 299,786.00

Rent Expense 18,000.00

Salaries Expense 122,000.00
Utilities Expense 2,000.00
Legal Expense 3,500.00
M&A Expense 7,000.00
Depreciation Expense 1,199.70
Cash 152500
Accumulated Depreciation 1199.7

Cash 452,600.00
Sales 452,600.00

Cost of Sales
Inventory