Professional Documents
Culture Documents
o The manufacturing operations will run for 10 months and the remaining 2 months
will be for maintenance of the machines and equipment. The company will
production of zeolite will halt during the months of June and December for
maintenance purposes.
o Zeolaub will begin its fiscal year every January of the first five years of
operations. The operating year will start in the first day of January in each of the
first five years.
o Production materials will be sourced out from the company’s trusted supplier with
Table 5.1. List of raw materials cost for the Zeolaub’s Zeolite
Employees and Personnel
o The salaries and wages of the employees will be based on their status. Table 5.2
shows the number of staff per position and each one’s employment status.
Driver 2 Contractual
● The General Manager will work for 12 months a year with monthly rate of P32,000.
● The Operations Manager will work for 12 months a year with monthly rate of
● The Finance Manager will work for 12 months a year with monthly rate of P27,000.
months’ work per year, 216 days, and 8 hours per day. Table 5.3 provides the details
14 P 365.00 24 P 1,226,400.00
▪ The Chief Research and Development Officer will work for 12 months a year with
▪ The Laboratory Assistant will work for 12 months a year with monthly rate of
▪ The delivery will be done twice a year. The delivery will be on the months of June
and December and two (2) days will be allotted to each stated delivery months. The
two truck drivers will be contractual employees with a daily rate of P365. That is a
total of around P1,460 annually per driver and combined will be P2,920 annually.
Source of Capital
o The business capital is obtained from the partner’s contribution and loan from a
bank. The total shares contributed by partners are P 31,500,000.00 and with the
additional money from the loan worth of P 22,050,000.00, and the total money
used for the business is worth of P 53,550,000.00.
o One member of the partnership will provide a land as her contribution to the
business capital.
Production Forecast
o For the first year of manufacturing operation, 10 tons will be produced; second year will
be 15 tons; and 3rd to 5th year will be 20 tons.
Sales Forecast
o The sales forecast for the first and second year will be 90% of the total production; third
and fourth year will be 95%; and fifth year will be 98%.
Inventory
o The remaining stocks will be considered as the ending inventory of each year.
Transportation Costs
o The company will rent a 10-wheeler truck for P5,999.00 per day, with a total
Utilities Expense
o The company will use electricity, water, internet, and telephone as its utilities.
Utility Expense
Tax Expense
o Taxes are assumed to be 30% of the business earnings. This will apply after the
Land
o One member of the partnership will provide a land as her contribution to the
business capital.
Plant and Administrative Building
o The manufacturing plant will be constructed in the contributed land. The administrative
building will be placed inside the plant.
Estimated Useful Life and Depreciation Expense of Land, Building and Equipment
Table 5.5. List of depreciable assets and their respective estimated useful years.
Weighing Scale 15
Washing Equipment 20
Cutting Machine 20
Pyrolyzer 20
Oven 20
Furnace 15
Mixer 15
Steel Barrels 5
Fork Lift 20
Push cart 5
Conveyor belt 20
Steel pipe 5
Storage tank 12
Laptop 5
Aircon 15
Printer 5
Loan
Promotion
o The pre-operating expense for the promotions is assumed to cost P50,000.00
Other Assumptions
o On the first year of the business operation, the Zeolaub will be able to penetrate
50% of the market and for the next years, they will gradually yield an increase
o There will be no accounts receivable since the company will impose a 100% payment
Product Costing
Table 5.6. Direct material cost for 1 ton of zeolite at lower range of price
1 Ton of Zeolite per Month @lower range of price
measurement
Ton
(NaOH) Ton
Ton
Table 5.7. Direct material cost of zeolite at lower range of price for the first 5 years
At Lower range of price
a. Raw Materials
Bamboo-leaf
200.00 195.00 190.00 185.00 180.00
Distilled Water
145,285.71 145,285.71 145,285.71 145,285.71 145,285.71
Sodium Hydroxide
(NaOH) 20,520.00 20,520.00 20,520.00 20,520.00 20,520.00
Aluminium Hydroxide
800.28 800.28 800.28 800.28 800.28
b. Packaging
Barrel
450.00 450.00 450.00 450.00 450.00
TOTAL COST
188,186.39 188,181.39 188,176.39 188,171.39 188,166.39