BIG CUPS INC 1
Big Cups Inc.
Shawn Cokes
Colorado State University – Global Campus
ACT 305 – Principles of Managerial Accounting
John Kuhn
August 31, 2013
BIG CUPS INC 2
Plastic cups are made with a process that injects heated plastic into a molding that is
designed for an individual cup. The plastic is starts out as small pellets and heated up until they
are melted. If they want to add color, colored polymers are added to the pellets. Then the plastic
is rolled by a machine into a flat sheet that rolls the plastic into a mold which has several cups
molded onto the plastic sheet. From there the plastic sheet is pushed through a machine that cuts
the cups off the sheet and sends the rest of the plastic to be melted again and reformed into more
cups. That machine feeds the cups into a machine that stacks them and feeds them into a
conveyor belt where they are slightly reheated and the lips of the cups are folded.
Expected Sales Budget January February March Quarter
Budgeted sales in cases 15000 12000 18000 45000
Selling price per case $25 $25 $25 $25
Total sales $375,000 $300,00
$450,00
$1,125,00
