The following information was gathered by the Budget Committee Chairman of ABC Corporation: ABC Co. produces and sells only one product. The selling price during the budget period is expected to be the prevailing price of ₱7.50 per unit. The company expects to sell 112,500 units of the product during the period. The desired finished goods inventory at the end of the period is 75,000 units while the expected beginning inventory is 62,500 units. Direct labor is ₱4.50 per hour. Each product requires 30 minutes to complete. Factory overhead is applied to production on the basis of direct labor hours. Variable factory overhead cost at the planned level of operations is budgeted at ₱49,800. Fixed budgeted overhead is ₱149,400. Each unit of product requires 1.5 kgs. of raw materials. Only one kind of raw material is used and it is expected to cost ₱0.30 per kilo. The desired ending inventory of raw materials is 12,000 kgs. the expected beginning inventory is 9,500 kilograms. Variable selling and administrative costs will amount to ₱1.50 per unit of product sold. The budgeted production is ₱112,500 ₱125,000 ₱100,000 ₱187,500 20.) The budgeted materials purchase for the period is ₱56,250 ₱190,000 ₱57,000 ₱55,500 21.) The budgeted direct labor cost is ₱1,125,000 ₱16,875,000 ₱562,500 ₱281,250 22.) The budgeted cost of goods sold on an absorption costing basis is ₱483,030 ₱536,700 ₱524,200 ₱483,705 23.) The budgeted income before tax is ₱360,720 ₱843,750 ₱173,220 ₱191,970
The following information was gathered by the Budget Committee Chairman of ABC Corporation:
ABC Co. produces and sells only one product. The selling price during the budget period is expected to be the prevailing price of ₱7.50 per unit. The company expects to sell 112,500 units of the product during the period. The desired finished goods inventory at the end of the period is 75,000 units while the expected beginning inventory is 62,500 units.
Direct labor is ₱4.50 per hour. Each product requires 30 minutes to complete.
Factory overhead is applied to production on the basis of direct labor hours. Variable
Each unit of product requires 1.5 kgs. of raw materials. Only one kind of raw material is used and it is expected to cost ₱0.30 per kilo. The desired ending inventory of raw materials is 12,000 kgs. the expected beginning inventory is 9,500 kilograms.
Variable selling and administrative costs will amount to ₱1.50 per unit of product sold.
The budgeted production is
₱112,500
₱125,000
₱100,000
₱187,500
20.)
The budgeted materials purchase for the period is
₱56,250
₱190,000
₱57,000
₱55,500
21.)
The budgeted direct labor cost is
₱1,125,000
₱16,875,000
₱562,500
₱281,250
22.)
The budgeted cost of goods sold on an absorption costing basis is
₱483,030
₱536,700
₱524,200
₱483,705
23.)
The budgeted income before tax is
₱360,720
₱843,750
₱173,220
₱191,970
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