NEBRES,LEOVELYN B.

SOLUTIONS:

PROBLEM 1

MAY JUNE JULY AUG SEPT Total Saes

Budgeted Sales 600,000 900,000 500,000
Actual Sales 430,000 540,000

Sales 430000 540000 600000 900000 500000 2970000

EXPECTED CASH COLLECTION FROM SALES

MAY JUNE JULY AUG SEPT Total Collection

20% 86000 108000 120000 180000 100000

70% 301000 378,000 420,000 630,000

10% 43000 54000 60000

TOTAL 86000 409000 541000 654000 790000 2480000

#2

TOTAL SALES 2970000

LESS:

TOTAL COLLECTION
2480000

A/R 490000

PROBLEM 2

JULY AUG SEPT TOTAL QUARTER PRODUCTION

Sales in Units 30000 45000 60000
add:
(10% of next mos. sales) 4500 6,000 5,000
TOTAL 34500 51000 65000
less:(beg. inv.) 3000 4,500 6,000
TOTAL 31500 46500 59000 137000

PROBLEM 3
 Year 2 Year 3
1st Yr. 2nd Yr 3rd Yr 4th Yr
Bugeted Production calculator 60000 90000 150000 100000 80000
multiply:(no. of chips per calc.) 3 3 3 3 3
TOTAL 180000 270000 450000 300000 240000
add: Ending inv.(20% of
following prod.) 54,000 90,000 60,000 48,000
TOTAL 234000 360000 510000 348000
less:(beg.inv.) 36000 54,000 90,000 60,000
TOTAL 198000 306000 420000 288000

TOTAL UNITS TO BE PRODUCEDx UNITS PRICE TOTAL COST OF UNIT

1212000 x 200 242400000
PROBLEM 4

#1
1st Qr. 2nd Qr 3rd Qr 4th Qr TOTAL
units to be produce 5000 4400 4500 4900
multiply:
(DL hours per unit) 0.4 0.4 0.4 0.4
TOTAL HOURS 2000 1760 1800 1960 7520
multiply:(DL hours per
unit) 10 10 10 10
TOTAL BUDGETED 75200
DL COST 20000 17600 18000 19600
#2

1st Qr. 2nd Qr 3rd Qr 4th Qr OVERALL COST

units to be produce 5000 4400 4500 4900
multiply:
(DL hours per unit) 0.4 0.4 0.4 0.4
TOTAL HOURS 2000 1760 1800 1960
LESS:
1800 1800 1800 1800
TOTAL ( excess) 200 0 0 160
multiply: P15
(P10X1.5=15) 15 15 15 15
TOTAL 3000 0 0 2400
Add:
(1800XP10) 18000 18000 18000 18000
TOTAL 21,000 18,000 18,000 20,400 77400

PROBLEM 5
#1

BUDGETED MANUFACTURING OVERHEAD

1st Qr. 2nd Qr 3rd Qr 4th Qr TOTAL
 20400
Budgeted DL hrs 5000 4800 5200 5400
multiply:
(variable OH rate) 1.75 1.75 1.75 1.75
35700
TOTAL VARIABLE COST 8750 8400 9100 9450
Add:
Fixed manufacturing OH 35000 35000 35000 35000
TOTAL 175700
MANUFACTURING OH 43,750 43,400 44,100 44,450

Less: non-cash asset 15000 15000 15000 15000

115700
TOTAL 28,750 28,400 29,100 29,450

#2

COMPUTE COMPANY'S MANUFACTURING RATE

TOTAL Budgeted DL hrs 175700

divided by:
Total budgeted OH 20400
MANUFACTURING RATE 8.612745098 or 8.6