EXERCISES: BUDGETING with PROBABILITY ANALYSIS1. Production & Inventory BudgetDMD Company has budgeted sales at P 100,000 and expects a profit of 10% of the sales. Expenses areestimated as follows: selling 10% of sales; administrative = 15% of sales. Labor is expected to be 40%of the total manufacturing costs. Factory overhead is to be applied at 75% of direct labor costs.Inventories are to be as follows:=January 1P 4,0002,5005,000MaterialsWork-in-processFinished goodsREQUIRED: Determine the budgeted amount for:A) Cost of goods soldB) Total manufacturing costC)Factory overheadD) Materials purchases2. Sales & Accounts Receivable BudgetPast collections experienced by BJS Company indicate that 60% of the sales billed in a month are collectedduring the month of sales, 30% are collected in the following month, and 10% are collected in the secondfollowing month. The following are the projected sales for next year:Other budgeted estimates are:JanuaryFebruaryMarchAprilMayP 480,000P 420,000REQUIRED: Determine the following:A) Budgeted collections during the month of March.Budgeted collections during the month of May.B)C) Projected accounts receivable balance on April 1.D) Projected accounts receivable balance on June 1.P 500,000P 550,000P 600,000December 31P 1,5007,50010,0003. Merchandise Purchases BudgetCIT Merchandising has budgeted the following sales for the 2nd quarter of 2021:April P 123,500May156,000June208,000REQUIRED: Determine the projected amount for:A) Merchandise purchases in April.All merchandises are to sell at its invoice cost plus 30% mark-up.Beginning inventories of each month are budgeted at 40% of that particular month's projected costof goods sold.B) Merchandise purchases in May.

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EXERCISES: BUDGETING with PROBABILITY ANALYSIS 1. Production & Inventory Budget DMD Company has budgeted sales at P 100,000 and expects a profit of 10% of the sales. Expenses are estimated as follows: selling = 10% of sales; administrative = 15% of sales. Labor is expected to be 40% of the total manufacturing costs. Factory overhead is to be applied at 75% of direct labor costs. Inventories are to be as follows: Materials January 1 P 4,000 2,500 5,000 Work-in-process Finished goods REQUIRED: Determine the budgeted amount for: A) Cost of goods sold B) Total manufacturing cost December 31 P 1,500 7,500 10,000 C) Factory overhead D) Materials purchases

EXERCISES: BUDGETING with PROBABILITY ANALYSIS 1. Production & Inventory Budget DMD Company has budgeted sales at P 100,000 and expects a profit of 10% of the sales. Expenses are estimated as follows: selling = 10% of sales; administrative = 15% of sales. Labor is expected to be 40% of the total manufacturing costs. Factory overhead is to be applied at 75% of direct labor costs. Inventories are to be as follows: Materials January 1 P 4,000 2,500 5,000 Work-in-process Finished goods REQUIRED: Determine the budgeted amount for: A) Cost of goods sold B) Total manufacturing cost December 31 P 1,500 7,500 10,000 C) Factory overhead D) Materials purchases

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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