Professional Documents
Culture Documents
08 Activity 1
08 Activity 1
ACTIVITY
ABC Company makes one (1) product. Its sales price is expected to be P80 per unit. Actual sales for
November 201A are 3,100 units, and 3,400 units for December 201A. ABC budgets its sales for the next six
(6) months for 201B:
January 2,700 April 2,500
February 2,600 May 2,900
March 2,750 June 3,000
Uncollectible accounts are negligible and can be disregarded. The beginning inventory on January 1, 201B is
270 units. ABC desires an ending inventory of 10% of the next month’s budgeted sales.
Each unit of finished goods requires 4 kg of raw materials that cost P3.00/kg. ABC desires an ending inventory
of direct materials equal to 20% of the following month’s production needs. Assume that ABC met this
requirement at the end of December, 201A. ABC makes all purchases on account and pays its accounts
payable as follows: 60% in the month of purchase and 40% in the month following purchase. Purchases in
December 201A were P31,000.
This study source was downloaded by 100000857973879 from CourseHero.com on 11-30-2022 17:31:07 GMT -06:00
https://www.coursehero.com/file/76395938/08-Activity-1-converteddocx/
Powered by TCPDF (www.tcpdf.org)