Projected Cost to be Incured with activity

this is a lesson /activity about projected cost to be incured

1. ACTIVITY 2 FORECASTING OF THE COST TO BE INCURED

2. Let us calculate the cost of goods sold of ATHENA’S BBQ for the month of January. Table 4 shows the costs incurred during the first month of operation of Athena’s BBQ. Athena get her pork from the public market every 3 days of the week. She marinated 45 kilos of Pork BBQ that will be sold for the given period of time. Therefore, there is Merchandise Inventory, beginning worth P13,500 as well as Merchandise Inventory, end worth P2,250. Athena’s BBQ c ost of goods is calculated by simply multiplying the number of items sold every month (4500 sticks of extreme pork BBQ) to its corresponding cost per unit(P25.00).

3. NAME OF PRODUCT COST PER ITEM ITEM SOLD MONTHLY PROJECTED COST OF PURCHASE Extreme Pork BBQ Total TABLE 4 Projected Cost Of Good Sold (Monthly) Athena’s BBQ

4. It is assumed that at an average, Athena pays at least 50.00 pesos for every 200 sticks of BBQ items delivered successfully by her supplier through a delivery. Since her average order is 480 pieces every month, she pays: Table 5 calculate the freight-in.

5. Name Of Product Number Of Item Sold Daily Item Sold Monthly Freight-in (January) Extreme Pork BBQ 150 Total TABLE 5 Freight-in Paid by Athena’s BBQ

6. The operating expenses and assumed amount are presented below: Operating Expenses: Water and Electricity 1200 WIFI 1299 Utility 1000 Total Operating Expenses

7. Important Assumption: Cost of Good Solds January- _____________________ February to April – Increases revenue of 8% from the previous month. May to July- Increases revenue of 5% from the previous month. August to September- De creases revenue of 6% from the previous month. October – same revenue from the previous month. November - Increases revenue of 10% from the previous month. December - Increases revenue of 15% from the previous month. Important Assumption: Operating Expenses Increases 5% every month.

8. MONTH JAN FEB MAR APR MAY JUN COST OF GOOD SOLD EXPENSES TOTAL COST OF EXPENSES MONTH JUL AUG SEPT OCT NOV DEC COST OF GOOD SOLD EXPENSES TOTAL COST OF EXPENSES TABLE 6 Projected Monthly Cost ( Year 1) Athena’s BBQ