PT Soledad located in Peru is an exporter company that produces two types of grills: models...

  

 

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PT Soledad located in Peru is an exporter company that produces two types of grills: models BRUN0102 and BRUN51TX. The BRUNO102 model is the standard model, while the BRUN 51TX is the latest model to apply the patented nanotechnology compression technique. So far, PT Soledad's products are sold to various countries in the world. The following is cost information for the two products for the month of November: Input Price (In Centimos (S/.)) Raw material • DM type 1 • DM type 2 Direct labor Input Quantity per output BRUN0102 unit Direct raw material • DM type 1 • DM type 2 Direct labor Machine working hours 4.5 per kg 3.5 per kg 14 per labor hour 4 kg 0,5 kg 3 hours 13 hours machine BRUN51TX 8 kg 2 kg 5 hours 20 hours machine Raw material inventory DM type 1 information Initial inventory Ending inventory target Value of inventory cost (in S/.) 230 kg 400 kg beginning 874 BRUN0102 Sales target (units) 750 Selling price (in s/.) 190 Target finished product 55 inventory - end of period (units) PT Soledad uses the FIFO approach to calculate the cost flow of its raw materials and finished product inventory. The following is information related to sales and inventory of finished products of PT Soledad: Finished product inventory - 30 beginning of period (units) DM type 2 Beginning finished product 2,500 inventory (in S/.) 70 kg 65 kg 224 BRUN51TX 300 275 35 50 7,440 PT Soledad also uses the ABC approach in calculating product costs. There are three groups of overhead costs: Inspection, Setup and Processing. The rate values for each of these activity groups are (in centimos (S/.)): 20 per inspection hour, 130 per setup hour, and 5 per machine working hour. The following is information regarding the amount of cost driver usage in each group of overhead activities by the BRUNO102 and BRUN51TX models. Cost driver information Number of units per batch Number of setup times per batch Number of inspections per batch BRUN0102 25 1.25 hours 0.5 hours BRUN51TX 15 2 hours 0.6 hours Other information available to PT Soledad is that there are fixed-nonmanufacturing costs for October worth S/. 32,000, of which half is the cost of workers' salaries. Salary costs are expected to increase by 5% in November. The only non-manufacturing variable cost is the sales commission, which is 1% of sales. As an accounting clerk, you are required to make: (@3%) 1. Production Budget (Units) 2. Direct Raw Material Purchase Budget 3. Overhead Budget for Three Activities 4. Final Finished Product Inventory Budget 5. COGS Budget PT Soledad located in Peru is an exporter company that produces two types of grills: models BRUN0102 and BRUN51TX. The BRUNO102 model is the standard model, while the BRUN 51TX is the latest model to apply the patented nanotechnology compression technique. So far, PT Soledad's products are sold to various countries in the world. The following is cost information for the two products for the month of November: Input Price (In Centimos (S/.)) Raw material • DM type 1 • DM type 2 Direct labor Input Quantity per output BRUN0102 unit Direct raw material • DM type 1 • DM type 2 Direct labor Machine working hours 4.5 per kg 3.5 per kg 14 per labor hour 4 kg 0,5 kg 3 hours 13 hours machine BRUN51TX 8 kg 2 kg 5 hours 20 hours machine Raw material inventory DM type 1 information Initial inventory Ending inventory target Value of inventory cost (in S/.) 230 kg 400 kg beginning 874 BRUN0102 Sales target (units) 750 Selling price (in s/.) 190 Target finished product 55 inventory - end of period (units) PT Soledad uses the FIFO approach to calculate the cost flow of its raw materials and finished product inventory. The following is information related to sales and inventory of finished products of PT Soledad: Finished product inventory - 30 beginning of period (units) DM type 2 Beginning finished product 2,500 inventory (in S/.) 70 kg 65 kg 224 BRUN51TX 300 275 35 50 7,440 PT Soledad also uses the ABC approach in calculating product costs. There are three groups of overhead costs: Inspection, Setup and Processing. The rate values for each of these activity groups are (in centimos (S/.)): 20 per inspection hour, 130 per setup hour, and 5 per machine working hour. The following is information regarding the amount of cost driver usage in each group of overhead activities by the BRUNO102 and BRUN51TX models. Cost driver information Number of units per batch Number of setup times per batch Number of inspections per batch BRUN0102 25 1.25 hours 0.5 hours BRUN51TX 15 2 hours 0.6 hours Other information available to PT Soledad is that there are fixed-nonmanufacturing costs for October worth S/. 32,000, of which half is the cost of workers' salaries. Salary costs are expected to increase by 5% in November. The only non-manufacturing variable cost is the sales commission, which is 1% of sales. As an accounting clerk, you are required to make: (@3%) 1. Production Budget (Units) 2. Direct Raw Material Purchase Budget 3. Overhead Budget for Three Activities 4. Final Finished Product Inventory Budget 5. COGS Budget

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1 Production Budget PT Soledad Production Budget For the Month of November BRUN0102 BRUN51TX Target Sales Units 750 300 Add Target Ending Inventory Un... View the full answer