ishware Incorporated Products has an inventory of 25,000 units of finished products on January 1. Sales forecast (in units) for the succeeding months follows: January - 40,000 February - 55,000 March - 50,000 April - 70,000 May - 60,000 The company maintains a finished goods inventory equal to 40 percent of the forecast sales of the next month. Each unit of a product requires 3 pounds of raw materials at P5 per pound. The budgeted direct labor cost is P8 per hour, and each finished unit requires 30 minutes. Variable factory overhead is 40 percent of raw materials costs. Fixed factory overhead including depreciation is P10,000, totals P90,000 per month. Normal volume is 60,000 units per month. Selling price is P30 per unit. Requirement #1: Determine the cost of producing a finished product per unit Requirement #2: Prepare production budget for 3 months ending March. Show total of quarter Requirement #3 Prepare budgeted gross profit showing cost of goods manufactured for 3 months ending March and total per quarter. Help me solve Requirement numbers 1 2 and 3. Lack of answering 3 requirements will be given down vote automatically.
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
ishware Incorporated Products has an inventory of 25,000 units of finished products on January 1. Sales
January - 40,000 February - 55,000 March - 50,000 April - 70,000 May - 60,000
The company maintains a finished goods inventory equal to 40 percent of the forecast sales of the next month. Each unit of a product requires 3 pounds of raw materials at P5 per pound. The budgeted direct labor cost is P8 per hour, and each finished unit requires 30 minutes. Variable factory
Requirement #1: Determine the cost of producing a finished product per unit
Requirement #2: Prepare production budget for 3 months ending March. Show total of quarter
Requirement #3 Prepare budgeted gross profit showing cost of goods manufactured for 3 months ending March and total per quarter.
Help me solve Requirement numbers 1 2 and 3. Lack of answering 3 requirements will be given down vote automatically.
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