COST ACCOUNTING BAKERY FEASIBILTY

Topics: Cost accounting, Flour, Cake Pages: 5 (479 words) Published: July 18, 2014
INDUS UNIVERSITY
DEPARTMENT OF BUSINESS ADMINISTRATION
COST ACCOUNTING PROJECT

To open a new manufacturing company and show at least 5 jobs statement of goods manufactured. FEASIBILITY REPORT
(BAKERS AND CONFECTIONARY)

Submitted to: Sir Wasim

Submitted by: Madiha Muhamad Aslam
MBA -13D (669-2013)

NAME: Sweet Warehouse

MISSION STATEMENT: “Our aim to make your all sweet ideas come true.” OVER VIEW:
The bakery is proposed as a means of additional income for the family farm. Products are handmade and of high quality.

LOCATION: Location plays an important role for every business whether it is small or big. Sweet warehouse is going to be situated in GULSHAN-E-IQBAL the center of the city.

BRIEF: Major products include cakes, snacks, sweets, nimko, biscuits, bread and general confectionery items. That will be made under supervision of Master Chef in clean and hygienic environment. So our customers receive the best quality products. PROJECT COST SUMMARY

Description
Amount Rs.
Space Requirement
75,000
Machinery and Equipment Requirements
858,000
Furniture, Fixture and other Requirement
212,000
Human Resource Requirement
85,000
Total Working Capital
1,230,000

Space Requirement:
Description
Estimated Area
(Sqft)
Monthly Rent (Rs.)
Production Space
2,700
30,000
Outlet Space
900
45,000
Machinery and Equipment Requirements

Plant, machinery and equipment for the proposed project are stated below.

Sr. No
Description of
Item
Req. Qty
Unit Cost (Rs.)
Total Cost
(Rs.)
1
Flour Sifter
1
125,000
125,000
2
Mixer
1
250,000
250,000
4
Oven (8x8 ft)
1
350,000
350,000
6
Deep Freezer
1
45,000
45,000
7
Fryer and Burner
2
15,000
30,000
8
Ceiling Machine
1
1,500
1,500
9
Moving Trolleys
1
8,000
8,000
10
Trays
20
200
4,000
11
UPS and Batteries
1
20,000
20,000

Misc. Tools &

12
Equipments (Pans,
1
25,000
25,000

Knives and others)

Total

858,500
Furniture & Fixtures and Other Equipments
Sr. No
Description of Item
Req. Qty
Unit Cost
Total Cost
1
Production Tables
2
5,000
10,000
2
Chairs & Other Furniture

7,000
7,000
3
Cost of Renovation and Interior Designing

80,000
80,000
4
Air conditioner
1
45,000
45,000
5
Vertical Freezer
1
30,000
30,000
6
Weighing Scales(For Cash Counter& Production)
1
5,000
5,000
7
Micro Wave Oven
1
10,000
10,000
8
Miscellaneous

25,000
25,000

Total

212,000

Human Resource Requirement
Description
No. of Employees
Salary/Month
(per person)

Owner Manager
1
25,000
Master Chef
1
20,000
Salesmen
2
10,000
Helpers
2
10,000
Total Staff
6

Raw Material Requirements

The raw materials are required for production of different varieties of bakery and confectionary products. The complete details of raw materials along with recipe of product will be calculated according to the job order. OPERATIONAL ASSUMPTIONS:

No of Working Days
355
No. of Working Hours / day
16
No. of Shifts / day
2
2 POUND FRESH CREAM CAKE RAW MATERIAL:
Material
Quantity / unit
Cost
Eggs
5
40 rs
Refined flour (Maida)
250gm
20 rs
Sugar
200gm
15 rs
Pine apple tin

1
55rs
Vanilla essence
few drops
--
Baking powder
1 tsp

--
Fresh cream
1 packet

75
Icing sugar
2 tbsp
--
Corn flour

1 tbsp
--
Standard Material Cost

250

BISCUITS RAW MATERIAL:

Quantity in grams for 1 kg
Cost in RS
Butter
170
100
Sugar
150
10
Flour (Maida)
350
28
Baking powder
5
2
Eggs
3
24
Standard Material Cost

164
CHICKEN BREAD RAW MATERIAL:

Raw material:
Quantity measures
Qyantity
Rate
Cost
Qty Ingredients
in grams For
Making 1 Kg

Cost
Flour (Maida)
Kg
416.02
50
20,801
150

Oil
Ltr
55.47
190
10,539
20

Yeast
Kg
5.55
180
998
2

Sugar
Kg
69.34
60
4,160
25

Salt
Kg
5.55
8
44
2

Chicken
Kg
970.70
275
266,943
350

Onion
Kg
346.68
40
13,867
125

Masala...
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