Considering that you are franchise owner of a famous MILK TEA Company. As part of your business plan you have to forecast your projected costs using the ff. assumptions. PARTICULARS MILK TEA COMPANY BUSINESS (in Philippine Peso) 2022 2021 Cost of Goods Sold Beginning Inventory Purchases Total Goods Available for sale P0.00 1. P 70, 000.00 70, 000.00 2. 3. Ending Inventory Total Cost of Goods Sold 20, 000.00 P 50, 000.00 4. 5. Operating Cost Salaries and Wages P 25, 000.00 P 5, 000.00 P 10, 000.00 P 15, 000.00 P 50, 000.00 6. Transportation 7. Rent 8. Utilities (light and water) 9. Total Fixed Cost 10. Total Variable Cost Total Cost P 105, 000.00 11. The following assumptions are: 1. Salaries and wages will increase 3% annually. 2. Transportation and utilities expenses will increase 7% per year. 3. There is an increase of 15.5% for year 2022. However, purchases will decrease 25% from th previous year because of OMICRON virus. 4. Rent will increase by P 1, 000.00 every after 2 years.
Considering that you are franchise owner of a famous MILK TEA Company. As part of your business plan you have to forecast your projected costs using the ff. assumptions. PARTICULARS MILK TEA COMPANY BUSINESS (in Philippine Peso) 2022 2021 Cost of Goods Sold Beginning Inventory Purchases Total Goods Available for sale P0.00 1. P 70, 000.00 70, 000.00 2. 3. Ending Inventory Total Cost of Goods Sold 20, 000.00 P 50, 000.00 4. 5. Operating Cost Salaries and Wages P 25, 000.00 P 5, 000.00 P 10, 000.00 P 15, 000.00 P 50, 000.00 6. Transportation 7. Rent 8. Utilities (light and water) 9. Total Fixed Cost 10. Total Variable Cost Total Cost P 105, 000.00 11. The following assumptions are: 1. Salaries and wages will increase 3% annually. 2. Transportation and utilities expenses will increase 7% per year. 3. There is an increase of 15.5% for year 2022. However, purchases will decrease 25% from th previous year because of OMICRON virus. 4. Rent will increase by P 1, 000.00 every after 2 years.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Solve the situation related to revenue
Transcribed Image Text:A. Considering that you are franchise owner of a famous MILK TEA Company. As part of your
business plan you have to forecast your projected costs using the ff. assumptions.
PARTICULARS
MILK TEA COMPANY BUSINESS
(in Philippine Peso)
2022
2021
Cost of Goods Sold
Beginning Inventory
Purchases
Total Goods Available for sale
P 0.00
1.
2.
P 70, 000,00
70, 000.00
20, 000.00
P 50, 000.00
3.
Ending Inventory
Total Cost of Goods Soid
4.
5.
Operating Cost
Salaries and Wages
P 25, 000.00
P 5, 000.00
P 10, 000.00
P 15, 000.00
P 50, 000.00
6.
Transportation
7.
Rent
8.
Utilities (light and water)
9.
Total Fixed Cost
10.
Total Variable Cost
Total Cost
P 105, 000.00
11.
The following assumptions are:
1. Salaries and wages will increase 3% annually.
2. Transportation and utilities expenses will increase 7% per year.
3. There is an increase of 15.5% for year 2022. However, purchases will decrease 25% from the
previous year because of OMICRON virus.
4. Rent will increase by P 1, 000.00 every after 2 years.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education