D’Unique Enterprise, a company that manufactures hair growth oil is preparing for its upcoming financial year (2021). D’Unique’ is seeking a loan from JNT Bank to purchase equipment that will be used to package the oils in anticipation of sales. The loans officer at the bank is requesting the company’s upcoming financial year’s budget to assess their cash position to repay the loan A. Sales/Collection Sales unit in the fourth quarter of 2020 will be 2500 units and is expected to increase by 500 units over each quarter in 2021. Selling price is $60 per unit. All sales are on account. Management expects future sales collection to follow past experiences. Customers pay 60% in the quarter of sales and 40% in the quarter following sales. Accounts receivable for December 31, 2020 is expected to be $60,000. B. Production To reduce the risk of a stock-out or idle time, D’Unique Co. has maintained an ending inventory policy of 20% of the following quarter’s sales unit. C. Direct material Each bottle of hair growth oil requires four ounces of liquid which cost $3.50 per ounce. The company wants to maintain an ending inventory of raw materials equal to 10% of the next quarter’s production requirements. Ending inventory of raw material for the fourth quarter of 2020 will be 1,520 ounces. Payments to suppliers for the purchase of direct material are done in two tranches - 70% in the quarter of purchase and 30% the quarter following purchase. Accounts payable of $10,600 at December 31, 2020, is expected to be paid in full in the first quarter of 2021. D. Direct Labour As the company is still labour intensive, one bottle takes an employee one hour to package. The standard wages rate of direct labour is $10.00 per hour. E. Manufacturing Overhead D’Unique Company manufacturing overheads is absorbed on the basis of direct labour hours. The following variable cost rates are
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
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