Problem
I. The following are sales projections for the year ending December 31, 200C
|
Quarter
|
Units
|
|
1st
|
20000
|
|
2nd
|
30000
|
|
3rd
|
35000
|
|
4th
|
50000
|
The beginning inventory of finished goods is 8,000 units. The finished goods at the end of each quarter is to be 20% of next quarter sales.
1. How many units should be produced for the first quarter?
2. If the actual sales in the first quarter are 18,000 units, how many units should be produced in the 2nd quarter?
3. How many units will be produced during the year if the sales for the first quarter of the following year would be 12,000 units?
II. Sales for Product Nel for the month of June are budgeted at 12,000 units Production of one unit of product Net requires 2.5 lbs of material at a cost of P1.20/lb. The standard production of product Nel is 2 units an hour and workers are paid at a uniform rate of P15/hour. The variable overhead is budgeted at P4/DLH with fixed overhead of P225,000/annum. Inventories beginning and ending are shown below.
|
|
Beginning
|
Ending
|
|
Product Nel
|
3,000
|
5,000
|
|
Material (in pounds)
|
8,000
|
10,000
|
1. How many units will be produced?
2. How many pounds of materials will be used?
3. How much is the direct material costs?
4. How many Direct Labor hours are required?
5. How much is the direct labor cost?
6. How many pounds of materials will be purchased?
7. How much is the cost of materials to be purchased?
8. How much is the budgeted factory overhead for June?
9. How much is the budgeted manufacturing costs for June?