Professional Documents
Culture Documents
Chua
keeps 10% of the next month’s sales as ending inventory. How many units should Camia produce for June?
2. Liezl Co. is planning to sell 600 straw hats. Each hat requires ½ kilo of straw and ¼ hour of direct labor. Straw
costs P0.20 per kilo and employees of the company are paid P22 per hour. Liezl has 80 kilos of straw and 40
hats in the beginning inventory and wants to have 50 kilos of straw and 60 hats in the ending inventory. How
many units should Mariel Co. produce in April?
3. Carlo Corp. reports all its sales on credit, and pays operating costs in the month they were incurred. The
amounts for 2014 are:
Seventy percent of customer amounts on account are collected in the month of sale and 30% in the
following month.
Cost of goods sold is 60% of sales.
Carlo Corp. purchases and pays for 40% merchandise in the month of acquisition and 60% in the following
month.
Operating expenses are: salaries, P50,000; depreciation, P12,000; rent, P15,000; and utilities, P14,000.
Accounts payable are used only for inventory acquisitions.
a. How much cash will Carlo Corp. receive in May from customers?
b. How much is Carlo Corp.’s May 30, 2014 budgeted accounts receivable?
c. How much is Carlo Corp.’s budgeted balance for accounts payable on May 30, 2014?
4. Pinok is planning to sell 220 boxes of bricks and produce 200 boxes of bricks in May. Each box requires 20
kilos of brick mix and a half hour of direct labor. Brick mix costs P5 per 100 kilos and employees of the
company are paid P12 per hour. Manufacturing overhead is applied at a rate of 120% of direct labor costs.
Pinok has 600 kilos of brick mix in the beginning inventory and wants to have 800 kilos of brick in the ending
inventory. What is the total amount to be budgeted for manufacturing overhead for the month?
5. On January 1, 2014, J. Kho, Inc. has a beginning inventory of 2,000 surfboards. J. Kho estimates it will sell
14,000 units during the first quarter of 2014 with a 10% increase in sales each quarter. J. Kho’s policy is to
maintain an ending inventory equal to 20% of the next quarter’s sales. Each surfboard costs P140 and s sold
for P200. How many units should J. Kho produce during the first quarter of 2014?
6. FLT Manufacturing Company has furnished the following information which occurred during May:
The accounts payable account is used only for direct materials. How much will FLT report as accounts
payable on the balance sheet at the end of May?
7. Each production worker can finish 4 wooden chairs per hour. During the month of June, Chairs, Inc. has
forecasted sales of 100,000 chairs. The beginning inventory was 1,000 chairs, and the desired ending
inventory is 2,500 chairs. how many hours of direct labor must be budgeted to meet production needs?
8. Job Box, Inc. budgeted the following manufacturing costs for 25,000 calculators:
Job Box, Inc. produced 20,000 calculators during March. How much is the budgeted total manufacturing cost
in March?
9. AlyChu Corp. showed the following on its direct materials budget for June:
The materials cost P2 per kilo. How much is the cost of direct materials per unit?
10. Kris Tan Company reported the following information for 2021: