Projected Units Sold

Economy Q1 Q2 Q3
Good 74,000 92,000 80,000
Fair 50,000 80,000 70,000
Bad 40,000 50,000 45,000

SOLUTION (A) (B):

Projected Units Sold
Q1 Q2
Good (projected sales x 40%) 29,600 36,800
Fair (projected sales x 35%) 17,500 28,000
Bad (projected sales x 25%) 10,000 12,500
BUDGETED SALES IN UNITS 57,100 77,300
x Unit sales price 25 25
BUDGETED SALES IN PESOS 1,427,500 1,932,500

Sales of: Credit Sales Q1 Q2

Q3, 20A 1,920,000 153,600
Q4, 20A 1,120,000 448,000 89,600
Q1, 20B 1,427,500 713,750 571,000
Q2, 20B 1,932,500 966,250
Q3, 20B 1,693,750
Q4, 20B 2,182,500
BUDGETED COLLECTIONS 1,315,350 1,626,850
 Q4 Probability
102,000 40%
90,000 35%
60,000 25%

Q3 Q4
32,000 40,800
24,500 31,500
11,250 15,000
67,750 87,300
25 25
1,693,750 2,182,500

Q3 Q4 TOTAL
153,600
537,600
114,200 1,398,950
773,000 154,600 1,893,850
846,875 677,500 1,524,375
1,091,250 1,091,250
1,734,075 1,923,350 6,599,625
SOLUTION (A):
Q1 Q2
Budgeted sales in units 67,200 87,100
Add: Finished goods - end 26,130 23,271
Total goods available for sale 93,330 110,371
Less: Finished goods - beginning 20,160 26,130
BUDGETED PRODUCTION 73,170 84,241

SOLUTION (B) (C) (D):

Q1 Q2
Budgeted Production 73,170 84,241
x Material required per unit (EX-25) 2 2
RM REQ. FOR PROD. (RM TO BE USED) 146,340 168,482
Add: Materials inventory - end 36,585 42,121
Total 182,925 210,603
Less: Material inventory - beginning 85,000 36,585
RM PURCHASES BUDGET (IN LBS) 97,925 174,018
x Material cost per lb 3 3
RM PURCHASES BUDGET (IN PESOS) 293,775 522,053

SOLUTION (E):
Payment at quarter of purchase 60% Trade discount
Payment at following quarter of purchase 40% Not discounted

Purchases of Credit purchases Q1

Q4, 20A 212,500 85,000
Q1, 20B 293,775 167,452
Q2, 20B 522,053
Q3, 20B 456,606
Q4, 20B 484,682
BUDGETED PAYMENTS 252,452

Credit purchases 60%

Q1, 20B 293,775 176,265
Q2, 20B 522,053 313,232
Q3, 20B 456,606 273,964
Q4, 20B 484,682 290,809
 Q3 Q4 Total
77,570 78,100 309,970
23,430 25,500 25,500
101,000 103,600 335,470
23,271 23,430 20,160
77,729 80,170 315,310

Q3 Q4 Total
77,729 80,170 315,310
2 2 2
155,458 160,340 630,620
38,865 40,085 40,085
194,323 200,425 670,705
42,121 38,865 85,000
152,202 161,561 585,705
3 3 3
456,606 484,682 1,757,115

5%
95%

Q2 Q3 Q4 Total
85,000
117,510 284,962
297,570 208,821 506,391
260,265 182,642 442,908
276,268 276,268
415,080 469,086 458,911 1,595,529

Discount Paid 1st quarter 40% Total

8,813 167,452 117,510 293,775
15,662 297,570 208,821 522,053
13,698 260,265 182,642 456,606
14,540 276,268 193,873 484,682
 Finished goods - end = 30% x next quarter's sales
Q1 Q2 Q3
Next quarter's sales 87,100 77,570 78,100
x Maintaining FG inventory 30% 30% 30%
Finished goods - end 26,130 23,271 23,430

Finished goods - beginning = the ending of the previous quarter

Q1 Q2 Q3
Ending sales in previous quarter 67,200
x Maintaining FG inventory 30%
Finished goods - beginning 20,160 26,130 23,271

Materials inventory - end = 25% x current quarter's needs

Q1 Q2 Q3
Current quarter requirements 146,340 168,482 155,458
x Material inventory percent 25% 25% 25%
Materials inventory - end 36,585 42,121 38,865
 Q4
85,000
30%
25,500

uarter
Q4

23,430

eds
Q4
160,340
25%
40,085
SOLUTION (A):
Q1 Q2
Budgeted Production 75,000 84,000
x Direct labor hours per unit 0.50 0.50
Budgeted Direct Labor Hours 37,500 42,000
x Direct labor rate per hour 30 30
BUDGETED DIRECT LABOR COST 1,125,000 1,260,000

SOLUTION (B):
Q1 Q2
Budgeted Direct Labor Hours 37,500 42,000
x Variable Overhead rate per DLH 6 6
Variable factory overhead 225,000 252,000

Q1-Q4
Normal capacity in DLH 37,500
x Fixed overhead rate per DLH 5
Fixed factory overhead 187,500

Q1 Q2
Variable factory overhead 225,000 252,000
Add: Fixed factory overhead 187,500 187,500
BUDGETED FACTORY OVERHEAD 412,500 439,500

Variable Overhead Q1
Q4, 2019 84,000 8,400
Q1, 2020 225,000 202,500
Q2, 2020 252,000
Q3, 2020 231,000
Q4, 2020 240,000
BUDGETED PAYMENTS TO VOH 210,900

Cash Fixed Overhead Q1

Q4, 2019 (70,000 x 70%) 49,000 4,900
Q1, 2020 (75,000 x 70%) 52,500 47,250
Q2, 2020 (75,000 x 70%) 52,500
Q3, 2020 (75,000 x 70%) 52,500
Q4, 2020 (75,000 x 70%) 52,500
BUDGETED PAYMENTS TO FOH 52,150
TOTAL PAYMENTS TO OVERHEAD 263,050

Q1 Q2
Direct labor cost 1,125,000 1,260,000
Total payments to overhead 263,050 301,800
Budgeted payment to conversion costs 1,388,050 1,561,800
 Q3 Q4 Total
77,000 80,000 316,000
0.50 0.50 0.50
38,500 40,000 158,000
30 30 30
1,155,000 1,200,000 4,740,000

Q3 Q4 Total
38,500 40,000 158,000
6 6 6
231,000 240,000 948,000

Q3 Q4 Total
231,000 240,000 948,000
187,500 187,500 750,000
418,500 427,500 1,698,000

Q2 Q3 Q4 TOTAL
8,400
22,500 225,000
226,800 25,200 252,000
207,900 23,100 231,000
24,000 24,000
249,300 233,100 47,100 740,400

Q2 Q3 Q4 TOTAL
4,900
5,250 52,500
47,250 5,250 52,500
47,250 5,250 52,500
47,250 47,250
52,500 52,500 52,500 209,650
301,800 285,600 99,600 950,050

Q3 Q4 TOTAL
1,155,000 1,200,000 4,740,000
285,600 99,600 950,050
1,440,600 1,299,600 5,690,050
Sales
Hardware 6,500,000
Software 2,520,000
Services 1,530,000 10,550,000
Less: Costs and expenses
Cost of hardware sold 3,870,000
Cost of software sold 1,530,000
Selling expenses 650,000
Service costs 750,000
Administrative costs 1,620,000 8,420,000
Operating income 2,130,000
 6,500,000 1.375 8,937,500
2,520,000 1.05 2,646,000
1,530,000 1.08 1,652,400 13,235,900

3,870,000 1.05 4,063,500

1,530,000 1.05 1,606,500
650,000 1.05 682,500
750,000 150,000 900,000
1,620,000 1,620,000 8,872,500
4,363,400

Adjusted
Unit sales 65,000 1.10 71,500
Selling price 100 1.25 125
Hardware sales 6,500,000 1.375 8,937,500