Exercise 3 (Materials Purchase Budget) Mini Products, Inc., has developed a very powerful electronic calculator. Each calculator requires three small "chips" that cost P200 each and are purchased from an overseas supplier. Mini Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as shown below. Year 2 Year 3 First Second Third Fourth First Budgeted. production calculators in 60,000 90,000 150,000 100,000 80,000 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of the quarter must be equal to 20% of the following quarter's production needs. Some 36,000 chips will be on hand to start the first quarter of Year 2. Required: Prepare a material purchases budget for chips, by quarter and in total, for Year 2. At the bottom of your budget, show the peso amount of purchases for each quarter and for the year in total.

Exercise 3 (Materials Purchase Budget) Mini Products, Inc., has developed a very powerful electronic calculator. Each calculator requires three small "chips" that cost P200 each and are purchased from an overseas supplier. Mini Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as shown below. Year 2 Year 3 First Second Third Fourth First Budgeted. production calculators in 60,000 90,000 150,000 100,000 80,000 The chip used in production of the calculator is sometimes hard to get, so it is necessary to carry large inventories as a precaution against stockouts. For this reason, the inventory of chips at the end of the quarter must be equal to 20% of the following quarter's production needs. Some 36,000 chips will be on hand to start the first quarter of Year 2. Required: Prepare a material purchases budget for chips, by quarter and in total, for Year 2. At the bottom of your budget, show the peso amount of purchases for each quarter and for the year in total.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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