Prepare a cost of goods manufactured schedule for ABC Company for 2020. Prepare cost of goods sold schedule for ABC Company for 2020. Prepare Income Statement for ABC Company.
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.
ABC Company has the following costs and expenses for the year December 31, 2020.
|
Raw Materials, 1/1/2020 |
P40,000 |
Insurance, Factory |
P14,000 |
|
Raw Materials, 12/1/2020 |
P25,000 |
Property Taxes, Factory Building |
P6,000 |
|
Raw Materials Purchases |
P305,000 |
Sales Revenue |
P2,000,000 |
|
Work-in-Process, 1/1/2020 |
P60,000 |
Delivery Expenses |
P50,000 |
|
Work-in-Process, 12/1/2020 |
P40,000 |
Sales Commissions |
P100,000 |
|
Finished Goods, 1/1/2020 |
P120,000 |
Indirect Labor |
P55,000 |
|
Finished Goods, 12/31/2020 |
P110,000 |
Indirect Material |
P105,000 |
|
Direct Labor |
P400,000 |
Factory Machinery, Rent |
P25,000 |
|
Factory Manager’s Salary |
P25,000 |
Factory Utilities |
P55,000 |
|
|
P25,000 |
Administrative Expense |
P250,000 |
Requirement:
- Prepare a cost of goods manufactured schedule for ABC Company for 2020.
- Prepare cost of goods sold schedule for ABC Company for 2020.
- Prepare Income Statement for ABC Company.
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