The following information has been gathered by the Budget Director of the DRAGONITE COMPANY, another outfit managed by the DEOXYS CORP. The firm manufactures and sells only one product. The selling price during the coming month is expected to be the prevailing price of P5 per unit. Expected sales during the month is a total of 75,000 units of finished goods. Finished goods expected to be on hand at the end of the month total 50,000 units. Finished goods expected to be on hand at the beginning of the month total 42,000 units.
Direct labor cost is P3.00 per hour. One-fourth an hour of direct labor is required to manufacture each unit of finished product.
Factory overhead is applied to work-in-process on the basis of direct labor hours. Variable factory expenses at the planned level of operations is expected to amount to P33,200; fixed overhead is expected to amount to P99,600.
The raw materials expected to be on hand at the beginning of the month total 5,000 gallons. Only one kind of raw material is used to produce the finished goods. One and one-half gallons of raw material are needed to manufacture each unit of finished product. Raw materials are expected to cost P0.18 per gallon during the coming month, its prevailing cost. Raw materials expected to be on hand at the end of the month total 8,000 gallons.
Variable administrative and selling expenses is P1.00 per unit.
In assisting the company to formulate the budget, you determined the following budget parameters. 17. Budgeted cost of raw materials to be used in production is
A. P8,910 B. P14,940
18. Budgeted raw materials purchases cost is A. P22,410
B. P22,950
19. Budgeted direct labor is A. P20,750
B. P33,200
20. Variable overhead cost per direct labor hour is A. P1.60
B. P1.80
21. Fixed overhead cost per direct labor hour is A. P1.60
B. P1.80
22. Budgeted contribution margin is A. P1.80
B. P2.58
23. Budgeted cost of goods sold (full cost) is A. P76,500
B. P96,500
24. Net profit before tax is A. P53,000
B. P103,500
C. P22,410 D. P124,500
C. P23,760 D. P124,500
C. P62,250 D. P83,000
C. P4.80 D. P6.40
C. P4.80 D. P6.40
C. P3.40 D. P5.00
C. P196,500 D. P304,000
C. P178,500 D. P249,500
25. JIGGLYPUFF INC. makes payments for purchases 10% during the month of purchase, 60% in the following month, and the remainder in the second month following the purchase. Purchases are projected to be P130,000 in January, P140,000 in February, and P160,000 in March. The March 31 accounts payable balance will be
A. P48,000. C. P144,000. B. P96,000. D. P186,000.
26. GYARADOS INC. budgeted sales of 50,000 units for January, 60,000 for February. GYARADOS desires an ending inventory equal to one-half of the following month's sales needs. Inventory on January 1 was as desired. Budgeted production for January is
A. 22,000 units. C. 55,000 units.
B. 52,000 units. D. 74,000 units.
Use the following information in answering the next item(s):
GIRATANA CORP. is one of the manufacturers of a part used in the pro
Direct labor cost is P3.00 per hour. One-fourth an hour of direct labor is required to manufacture each unit of finished product.
Factory overhead is applied to work-in-process on the basis of direct labor hours. Variable factory expenses at the planned level of operations is expected to amount to P33,200; fixed overhead is expected to amount to P99,600.
The raw materials expected to be on hand at the beginning of the month total 5,000 gallons. Only one kind of raw material is used to produce the finished goods. One and one-half gallons of raw material are needed to manufacture each unit of finished product. Raw materials are expected to cost P0.18 per gallon during the coming month, its prevailing cost. Raw materials expected to be on hand at the end of the month total 8,000 gallons.
Variable administrative and selling expenses is P1.00 per unit.
In assisting the company to formulate the budget, you determined the following budget parameters. 17. Budgeted cost of raw materials to be used in production is
A. P8,910 B. P14,940
18. Budgeted raw materials purchases cost is A. P22,410
B. P22,950
19. Budgeted direct labor is A. P20,750
B. P33,200
20. Variable overhead cost per direct labor hour is A. P1.60
B. P1.80
21. Fixed overhead cost per direct labor hour is A. P1.60
B. P1.80
22. Budgeted contribution margin is A. P1.80
B. P2.58
23. Budgeted cost of goods sold (full cost) is A. P76,500
B. P96,500
24. Net profit before tax is A. P53,000
B. P103,500
C. P22,410 D. P124,500
C. P23,760 D. P124,500
C. P62,250 D. P83,000
C. P4.80 D. P6.40
C. P4.80 D. P6.40
C. P3.40 D. P5.00
C. P196,500 D. P304,000
C. P178,500 D. P249,500
25. JIGGLYPUFF INC. makes payments for purchases 10% during the month of purchase, 60% in the following month, and the remainder in the second month following the purchase. Purchases are projected to be P130,000 in January, P140,000 in February, and P160,000 in March. The March 31 accounts payable balance will be
A. P48,000. C. P144,000. B. P96,000. D. P186,000.
26. GYARADOS INC. budgeted sales of 50,000 units for January, 60,000 for February. GYARADOS desires an ending inventory equal to one-half of the following month's sales needs. Inventory on January 1 was as desired. Budgeted production for January is
A. 22,000 units. C. 55,000 units.
B. 52,000 units. D. 74,000 units.
Use the following information in answering the next item(s):
GIRATANA CORP. is one of the manufacturers of a part used in the pro