S T R I C T L Y C O N F I D E N T I A L

Module 6:
BUSINESS PLANNING AND SHORT-TERM BUDGETARY SYSTEMS
ANSWER KEY

Test 1. TRUE OR FALSE QUESTIONS.

1. T 6. F 11. F 16. F 21. T 26. F

2. F 7. T 12. F 17. F 22. T 27. T
3. T 8. F 13. F 18. F 23. F 28. F
4. F 9. T 14. T 19. T 24. T 29. T
5. T 10. T 15. F 20. T 25. T 30. F

Test 2. MULTIPLE CHOICE QUESTIONS.

1. C 6. B 11. B 16. A 21. C 26. A 31. C 36. D

2. D 7. D 12. C 17. D 22. C 27. C 32. C 37. C
3. D 8. C 13. C 18. C 23. D 28. D 33. B 38. D
4. A 9. B 14. B 19. B 24. C 29. B 34. C 39. C
5. D 10. D 15. A 20. C 25. C 30. B 35. B 40. A

Test 3. PRACTICE EXERCISES.

Problem 1
1 ₱297,200
2 ₱192,000
3 ₱243,200
4 ₱32,900
5 ₱13,700
6 ₱63,300
7 ₱102,300
8 ₱192,000
9 ₱335,200

Problem 2
1 ₱137,000
2 ₱87,300
3 ₱30,000
4 ₱54,700

Problem 3
1 ₱166,000
2 ₱248,000
C O P Y R E S T R I C T E D F O R I N S T R U C T O R S O N L Y
 S T R I C T L Y C O N F I D E N T I A L

Problem 4
1 ₱134,250
2 ₱45,000
3 ₱5,000 units
4 ₱78,000

Problem 5
1 ₱129,600
2 ₱97,900
3 ₱30.70

Problem 6
1 ₱27,000
2 ₱3,000

Problem 7 Budget Preparation

Problem 8 Budget Preparation

Problem 9

January February March April

Budgeted sales (units) ................. 21,000 36,000 61,000 41,000
Add: Desired ending inventory ..... 7,200 12,200 8,200 6,200
Total needs.................................. 28,200 48,200 69,200 47,200
Deduct: Beginning inventory ........ 4,000 7,200 12,200 8,200
Units to be produced ................... 24,200 41,000 57,000 39,000

January February March Quarter

Units to be produced 24,200 41,000 57,000 122,200
Switches per unit ×3 ×3 ×3 ×3
Production needs 72,600 123,000 171,000 366,600
Add: Desired ending inventory 36,900 51,300 35,100 35,100
Total needs 109,500 174,300 206,100 401,700
Deduct: Beginning inventory 21,780 36,900 51,300 21,780
Required purchases 87,720 137,400 154,800 379,920

Problem 10
April: ₱31,524
May: ₱31,524

C O P Y R E S T R I C T E D F O R I N S T R U C T O R S O N L Y