For January, February, and March 2021, Mr. Santos plans to sell Chemical A in the following schedule: 20 liters in January; 30 liters in February; and 30 liters in March. Consider the following assumptions: Assumptions: (sales received in cash; cost and expenses paid in cash) Price Per Liter (in Pesos) 10,000 Salaries Per Month (in Pesos) Cost Per Liter           Salesman 30,000              Labor 25% of Price         Assistant 20,000             Materials 25% of Price Total Salaries 50,000 Selling Expenses Per Month (Pesos) 50,000         Miscellaneous (Per Month) 10,000   Other Assumptions: All Sales are on cash basis. Production costs are paid in cash; labor is subcontracted. All purchases of raw materials are paid in cash. All finished goods are assumed to be sold. No ending inventory. No taxes considered.   REQUIRED: a. FINANCIAL PLAN FOR JANUARY, FEBRUARY, AND MARCH b. Sales Forecast and  Cost (Production) and Expense Budget c. Income Statement (up to operating income) for the three months in consideration.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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For January, February, and March 2021, Mr. Santos plans to sell Chemical A in the following schedule: 20 liters in January; 30 liters in February; and 30 liters in March. Consider the following assumptions:

Assumptions: (sales received in cash; cost and expenses paid in cash)

Price Per Liter (in Pesos)

10,000

Salaries Per Month

(in Pesos)

Cost Per Liter

 

        Salesman

30,000

             Labor

25% of Price

        Assistant

20,000

            Materials

25% of Price

Total Salaries

50,000

Selling Expenses Per Month (Pesos)

50,000

 

 

 

 

Miscellaneous (Per Month)

10,000

 

Other Assumptions:

  1. All Sales are on cash basis.
  2. Production costs are paid in cash; labor is subcontracted.
  3. All purchases of raw materials are paid in cash.
  4. All finished goods are assumed to be sold. No ending inventory.
  5. No taxes considered.

 

REQUIRED:

a. FINANCIAL PLAN FOR JANUARY, FEBRUARY, AND MARCH

b. Sales Forecast and  Cost (Production) and Expense Budget

c. Income Statement (up to operating income) for the three months in consideration.

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