# Truong Cong Sang SB90199 MA s Individual Assignment

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Truong Cong Sang SB90199 MA s Individual Assignment
FPT UNIVERSITY

Individual Assignment
Managerial Accounting

Trương Công Sáng – SB90199
Lecturer: Đinh Tiến Thành
Class: SB0769

Individual Assignment

PROFIT PLANNING
VietTien Corp
To illustrate the master budgeting process, we will use an example based on the activities of VietTien Corp, one of the biggest exporters of Vietnam that sells t-shirts with VTec Logo.
VietTien Corp purchases white t-shirts from external suppliers but do take care of the printing process. The example focuses on the VietTien cloth-printing factory.
For simplicity, we assume that VietTien has only one product: a standard short-sleeved tshirt with the VTec logo printed on the back. All budgeting exercises refer to year N.

1. Sales Budget
Base on the Units sale and Unit selling price, we can budget Sale in \$ for each quarter to predict cash flow. It will help manager have a good strategy in this year.

1

2

3

4

Year

Units

2.400

2.600

2.800

3.000

10.800

Unit Selling Price

10,00

10,00

11,00

11,00

10,54

24.000

26.000

30.800

33.000

113.800

Budgeted Sales (\$)

We have the budgeted Units to be sold for each quarter: 2.400; 2.600; 2.800; 3.000 and
Selling price in each quarter: \$10; \$10; \$11; \$11, then Budgeted Sales equal (Units sold) x (Unit
Selling Price). The average Unit selling price = (Total Budgeted Sales) / (Total Units)

Truong Cong Sang – SB90199

Page 1

Individual Assignment

2. Production Budget
In this budget, we find the Units will be produced in next each quarter. From that, we can contribute the raw material and purchase it rational to predict cash flow.
4 (N-1)
Budgeted Sales
Desired ending inventory

400

Total needs
Less : beginning inventory
Units to be produced

1

2

3

4

Year

2.400

2.600

2.800

3.000

10.800

650

700

750

690

690

3.050

3.300

3.550

3.690

11.490

400

650

700

750

400

2.650

2.650

2.850

2.940

11.090

1 (N+1)
2.760

We have the ending inventory in Q4(N – 1) of 400 Units, and desired the Sales of Q1(N + 1)
increase

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