NUBD Co. has the following budget estimates for its second year of operations: Projected sales – P3,500,000 Projected net income before tax – 12% of sales Estimated selling and administrative expenses – 25% of sales Direct labor and factory overhead are budgeted at 70% of the total manufacturing cost. Inventories are estimated as follows: Raw materials P220,000 270,000 Goods in process P250,000 300,000 Finished goods P350,000 420,000 Beginning Ending
NUBD Co. has the following budget estimates for its second year of operations: Projected sales – P3,500,000 Projected net income before tax – 12% of sales Estimated selling and administrative expenses – 25% of sales Direct labor and factory overhead are budgeted at 70% of the total manufacturing cost. Inventories are estimated as follows: Raw materials P220,000 270,000 Goods in process P250,000 300,000 Finished goods P350,000 420,000 Beginning Ending
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
p28
![Natio
The estimated purchases of raw materials would be
Format: 111,111
NUBD Co. has the following budget estimates for its second year of operations:
Projected sales – P3,500,000
Projected net income before tax – 12% of sales
Estimated selling and administrative expenses– 25% of sales
Direct labor and factory overhead are budgeted at 70% of the total manufacturing
cost.
Inventories are estimated as follows:
Raw materials
P220,000
270,000
Goods in process
P250,000
300,000
Finished goods
P350,000
420,000
Beginning
Ending](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8791d4e1-dd2e-47ec-8d2e-1a3e7df7b7aa%2F2d7f8dc2-99f9-417d-b6c7-5f7851e63c43%2F9qjd9dx_processed.png&w=3840&q=75)
Transcribed Image Text:Natio
The estimated purchases of raw materials would be
Format: 111,111
NUBD Co. has the following budget estimates for its second year of operations:
Projected sales – P3,500,000
Projected net income before tax – 12% of sales
Estimated selling and administrative expenses– 25% of sales
Direct labor and factory overhead are budgeted at 70% of the total manufacturing
cost.
Inventories are estimated as follows:
Raw materials
P220,000
270,000
Goods in process
P250,000
300,000
Finished goods
P350,000
420,000
Beginning
Ending
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