Charmaine Corporation has budgeted the sales of its product in 2003 up to the first quarter...

Transcribed Image Text:

Charmaine Corporation has budgeted the sales of its product in 2003 up to the first quarter of 2004 as follows: 2003 1" quarter 2 quarter 3 quarter 4th quarter 2004 1" quarter 75,000 The company has a policy of maintaining finished goods inventory equal to 20% of the next quarter's sales and materials inventory of 30% of current quarter's requirements. It takes 3 lbs of materials inventory of material AX-23 to produce unit product. The materials inventory at the start of the ear was recorded at 75,000 pounds. Sales in units 60,000 80,000 70,000 90,000 Material AX-23 costs P1.20 per pound to purchase. The terms of the purchase is 2/30, n/45. The company pays 55% of its purchases in the quarter of purchase and avail of the 2% trade discount. The remaining balance is paid in the following quarter. The account payables at December 31, 2002 are recorded at P81,000. Required Schedule 2. Budgeted materials purchases per quarter and in total for the year 2003 Schedule 3. Budgeted payments to merchandise suppliers for the year 2003 Charmaine Corporation has budgeted the sales of its product in 2003 up to the first quarter of 2004 as follows: 2003 1" quarter 2 quarter 3 quarter 4th quarter 2004 1" quarter 75,000 The company has a policy of maintaining finished goods inventory equal to 20% of the next quarter's sales and materials inventory of 30% of current quarter's requirements. It takes 3 lbs of materials inventory of material AX-23 to produce unit product. The materials inventory at the start of the ear was recorded at 75,000 pounds. Sales in units 60,000 80,000 70,000 90,000 Material AX-23 costs P1.20 per pound to purchase. The terms of the purchase is 2/30, n/45. The company pays 55% of its purchases in the quarter of purchase and avail of the 2% trade discount. The remaining balance is paid in the following quarter. The account payables at December 31, 2002 are recorded at P81,000. Required Schedule 2. Budgeted materials purchases per quarter and in total for the year 2003 Schedule 3. Budgeted payments to merchandise suppliers for the year 2003

Answer rating: 100% (QA)

The detailed answer for the above question is provided bel... View the full answer