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Select a small local store, in your area who manufactures goods and sell it to customers all through

the year. Conduct an interview and identify/analyze their entire manufacturing process. Based on

your interview data, you will have to prepare a Master Budget for that “shop” for the next financial

year, i.e., 2022. Prepare a forecasted Income statement and Balance sheet for the year 2022 from

your master budget.

The master budget should include: Sales budget (price, quantity and AR), production budget, Direct

Material budget (including AP), Direct Labor budget, MOH budget, Selling and Admin budget

(including AP, if any) and Cash budget.


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