COMPLETE THE BUDGET FOR THE 3RD AND 4TH QUARTERS AND THE TOTAL BASEBOARD First quarter Second quarter
Question:
COMPLETE THE BUDGET FOR THE 3RD AND 4TH QUARTERS AND THE TOTAL
BASEBOARD | First quarter | Second quarter | Third quarter | Fourth quarter | Total |
Reqd Prodn | 1,005 | 1,105 | |||
1 baseboard | 1,005 | 1,105 | |||
Desired 5% Ending Invty | 55.25 | 60.25 | * | ||
Less Beginning | (50.25) | (55.25) | |||
Total purchases | 1,010 | 1,110 | |||
Cost price | P1,500 | P1,500 | |||
Total purchase cost | P1,515,000 | P1,665,000 | |||
Total cost of DM used | P1,507,500 | P1,657,500 | P6,930,000 |
*1,315 + 100= 1,405 x .05=70.25
SCREWS | First quarter | Second quarter | Third quarter | Fourth quarter | Total |
Reqd Prodn | 1,005 | 1,105 | |||
4 screws | 4,020 | 4,420 | |||
Desired 5% Ending | 221 | 241 | * | ||
Less Beginning Invty | (201) | (221) | |||
Total purchases | 4,040 | 4,440 | |||
Cost price | P25 | P25 | |||
Total purchase cost | P101,000 | P111,0000 | |||
Total cost of DM used | P100,500 | P110,500 | P 462,000 |
*1,305 + 100= 1,405 x .05= 70.25
The following additional costs and expenses are considered to complete the budget:
Variable Fixed
Sales commissions | 6% based on sales | |
Freight Out | P500 per skateboard sold | |
Advertising | P5,000 per quarter | |
Depreciation on office equipment | P4,000 per quarter | |
Other operating expenses | P3.50 based on sales | P8,500 per quarter |
Indirect materials P25.00 based on production
Supervision P15,000 per quarter
Heat, light and power P30.00 based on production
Other manufacturing costs P15.00 based on production P16,000 per quarter
- Prepare a manufacturing overhead budget Figures in red used as a guide only
.
MOH Budget | First quarter | Second quarter | Third quarter | Fourth quarter | Total |
Production reqd | 1,005 | 1,105 | 1,205 | 1,305 | |
Indirect Materials | P25,125* | P27,625 | |||
Supervision | 15,000 | 15,000 | |||
Heat, Light, Power | 30,150** | 33,150 | |||
Other Var Mfg costs | 15,075*** | 16,575 | |||
Other Fxd Mfg costs | 16,000 | 16,000 | |||
Total MOH Costs | P101,350 | P108,350 | P115,350 | P122,350 | P447,400 |
*P25 x 1,005 units produced
**P30 x 1,005
***P15 x 1,005
- Prepare an operating expense budget Figures in red used as a guide only
Operating Cost Budget | First quarter | Second quarter | Third quarter | Fourth quarter | Total |
Sales | P5,000,000 | P5,500,000 | P6,000,000 | P6,500,000 | |
Sales Volume | 1,000 | 1,100 | 1,200 | 1,300 | |
Sales commission | P300,000* | P330,000 | |||
Freight out | 500,000** | 550,000 | |||
Depreciation | 4,000 | 4,000 |
Advertising | 5,000 | 5,000 | |||
Other Variable Operating | 3,500*** | 3,850 | |||
Other Fixed Operating | 8,500 | 8,500 | |||
Total Operating Costs | P821,000 | P901,350 | P981,700 | P1,062,050 | P3,766,100 |
*6% x Sales P5,000,000
** P500 x 1,000 units sold
***P3.50 x 1,000 units sold
- What will be the result of operation for each quarter?
First quarter | Second quarter | Third quarter | Fourth quarter | Total | |
Sales | P 5,000,000 | P5,500,000 | |||
Cost of Goods Sold (Sch 1) | 2,875,150 | 3,158,150 | |||
Gross Profit | 2,124,850 | 2,341,850 | |||
Operating Expenses | 821,000 | 901,350 | |||
Net Profit | P1,303,850 | P1,440,500 | P1,577,150 | P1,713,800 | P 6,035,300 |
Schedule 1 | First quarter | Second quarter | Third quarter | Fourth quarter | TOTAL |
Direct Materials Used: | |||||
Roller Bearings | P1,005,000 | P1,105,000 | |||
Skateboards | 1,507,500 | 1,657,500 | |||
Screw | 100,500 | 110,500 | |||
Total raw materials used | P2,613,000 | P2,873,000 | |||
Direct Labor | 160,800 | 176,800 | |||
Manufacturing Expenses | |||||
Variable | 70,350 | 77,350 | |||
Fixed | 31,000 | 31,000 | |||
Total Cost of Goods Sold | P2,875,150 | P3,158,150 | P3,441,150 | P3,724,150 | P13,198,600 |
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin