During a normal situation, the following growth has been observed: Raw material cost increases by 5% every year Labor cost increases by 3% every year MOH cost increases by 7% every year Selling and administration cost increases by 2% every year Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2019 (Pre-CORONA virus year) and another Master Budget for the year 2020 (CORONA virus year). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and opening/closing inventory. Show details/breakdown of your calculation.

Selling price was BDT 20 per plate

 Average Sales volume was 70 plates per day

 Annual sales growth was 5%

 Price increases by 15% every year

 Monthly average selling and administration cost of the stall was:

Grease payment = BDT 500/month

 Rent = BDT 1,200/month

Utility = BDT 200/month

Depreciation = BDT 50/month

Answer rating: 100% (QA)

To create the Master Budget for the years 2019 and 2020 we need to consider the following budget components Sales Budget In 2019 the selling price per ... View the full answer