4/5/23, 4:54 PM Submissions - B-MGNT323 BOM31 COSTING AND PRICING 2nd Sem ( 2022-2023 ) - FA07: Drills on Budgetary Planning,

lanning, Sales Budget and…

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B-MGNT323 BOM31 COSTING AND PRICING 2nd Sem ( 2022-2023 )

2223S2 M5 Budgetary Planning

FA07: Drills on Budgetary Planning, Sales Budget and Production Budget

Submissions
Here are your latest answers:

Question 1
Instructions:  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500)
Problem:  Below are the following data for the development of Direct Materials Budget:
Quantity of Materials X per Product = .5
Cost of Materials X = P112
Materials X on hand = 8,290
Desired inventory of Materials X = 12,800
Number of Products to be Produced = 120,000
Required:  Determine the following:
1.  Quantity of Materials X needed for the Production Department.  _____
2.  Cost of Materials X in the Production Department.  _____
3.  Quantity of of Materials X to be purchased.  _____
4.  Amount of Budgeted Materials X to be purchased.  _____
Response: [none]

Correct answer: 60000, 6720000, 64510, 7225120

Score: 0 out of 4 No

Question 2
Instructions:  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500)
 
Below are the financial data of Rozz Manufacturing in preparing the Direct Materials Budget:
a.  Quantity of direct materials to be purchased is 44,000 pcs.
b.  Each unit requires 2 pcs. of direct materials.
c.  Cost of direct materials is P40 per pc.
d.  Inventory on hand is 2,400 pcs. and the desired inventory is 4,400 pcs.
 
Required:
1.  Number of units produced.  _____
2.  Manufacturing cost on direct materials.  _____
3.  Amount of Budget for the purchase of direct materials.  _____
4.  Cost of Direct Materials per unit.  _____
Response: [none]

Correct answer: 21000, 1680000, 1760000, 80

Score: 0 out of 4 No

Question 3
Instructions:  Do not use comma (i.e. if your answer is 20,500, encode it as 20500).
 
The following information is taken from the production budget for the first quarter:
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4/5/23, 4:54 PM Submissions - B-MGNT323 BOM31 COSTING AND PRICING 2nd Sem ( 2022-2023 ) - FA07: Drills on Budgetary Planning, Sales Budget and…

  Beginning inventory in units    22,000

  Budgeted sales for the quarter  344,000
     How many finished goods should be produced during the quarter if the company desires 24,500
units inventory beginning for the second quarter?  _____
Response: [none]

Correct answer: 346500

Score: 0 out of 1 No

Question 4
Instructions:  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500).
 
PROBLEM:  XYZ Company projected to manufacture 22,230 units of Product X which is sold at P9 per unit. The
desired ending inventory is 2,300 units and the beginning inventory is less by 10% from the ending inventory.
 
REQUIRED:  1.  How much is the Sales Budget?  _____
2.  The number of units sold?  _____
Response: [none]

Correct answer: 198000, 22000

Score: 0 out of 2 No

Question 5
Instructions:  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500)
 
The company develops factory overhead budget for 2021 with the following projections:
1.Rent and insurance are fixed expense and will be the same with 2020.

2.Depreciation will increase by P1,800 after Quarter 2 for the purchase of additional equipment.
3.Utilities, supplies and repairs will increase by 8% due to inflation.

4.The yearly increase of 5% is applied to all workers irrespective of status.

5.The total indirect materials is based at 7.5% of the direct materials budget of P5,100,000, and pro-
rated per quarter based on 2020 budget.

Below is the the 2020 financial data of the company:

Account Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total

Rent expense 56,800 56,800 56,800 56,800 227,200
Insurance expense 4,400 4,400 4,400 4,400 17,600
Utilities 24,300 26,800 30,700 34,800 116,600
Repairs and
9,500 8,600 10,200 11,800 40,100
maintenance
Factory supplies 12,600 14,000 13,400 14,600 54,600
Depreciation expense 22,200 22,200 22,200 22,200 88,800
Indirect labor 82,400 82,400 86,400 96,800 348,000
Indirect materials 75,000 80,000 85,000 100,000 340,000
287,200 295,200 309,100 341,400 1,232,900

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4/5/23, 4:54 PM Submissions - B-MGNT323 BOM31 COSTING AND PRICING 2nd Sem ( 2022-2023 ) - FA07: Drills on Budgetary Planning, Sales Budget and…
Determine the following for 2021 factory overhead budget:

1.  What is the budgeted rent expense for quarter 2?  _____

2.  What is the budgeted total utilities for 2021?  _____

3.  What is the projected depreciation expense for quarter 4?  _____

4.  What is the total depreciation expense for 2021?  _____

5.  How much is the budgeted indirect labor for quarter 4?  _____

6.  What is the projected cost of indirect materials for quarter 1?  _____

7.  How much is the total budget for quarter 3?  _____

8.  How much is the total projected factory overhead budget for 2021? _____

Response: [none]

Correct answer: 56800, 125928, 24000, 92400, 101640, 84375, 330189, 1313304

Score: 0 out of 8 No

Question 6
Instructions:  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500).
 
PROBLEM:  The required units of production is 294,400 for the targeted sales of 288,000 units.
The required ending inventory is 12,000 units. What is the beginning inventory?  _____
Response: [none]

Correct answer: 5600

Score: 0 out of 1 No

Question 7
Instructions:  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500)
 
Problem: The Baby Bib Company projected to manufacture 40,000 bibs. Last year, the
Sewing Department pays Total Direct Labor Cost of P240,000. The cost of labor for sewer is
P480 for 8 hours.
Calculate the Direct Labor Hour per bib or the number of minutes per bib?  _____ minutes
Response: [none]

Correct answer: .10, 6

Score: 0 out of 2 No

Question 8
Instructions: 
1.  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500)
2.  If the amount is to be deducted, use open and close parenthesis to denote deduction (i.e. if your answer is -P20,500,
encode it as (20500)
 
Problem: On January 1, 2020, the Company budget committee has reached agreement on the following
data for the development of the 6 – month period Sales Budget and Production Budget ending June
30, 2020.
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4/5/23, 4:54 PM Submissions - B-MGNT323 BOM31 COSTING AND PRICING 2nd Sem ( 2022-2023 ) - FA07: Drills on Budgetary Planning, Sales Budget and…

Sales:  
In units: 1st Quarter 5,000, 2nd Quarter 6,000, 3rd Quarter 7,000
Selling price: PP95/ unit
 
Ending finished goods inventory:
30% of the next quarter’s expected sales units
 
Required: Prepare Sales Budget and Production Budget per quarter for the 6-month period ended June
30, 2020 by filling - up the following table:
Sales Budget: Quarter 1 Quarter 2
Sales in units 5,000 6,000
Amount of Sales No. 1  _____ No. 2  _____
 
Production Budget: Quarter 1 Quarter 2
Sales No. 3  _____ No. 4  _____
Inventory, end No. 5  _____ No. 6 _____
Inventory, beginning No. 7  _____ No. 8  _____
Units to be manufactured No. 9  _____ No. 10  _____

Response: [none]

Correct answer: 475000, 570000, 5000, 6000, 1800, 2100, -1500, (1500), -1800, (1800), 5300, 6300

Score: 0 out of 10 No

Question 9
Instructions:  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500).
 
Problem:  ABC Company projected to manufacture 57,510 units of Jolly Doll for the Sales Budget of P681,600. The
desired ending inventory is 5,680 units and the beginning inventory is 4,970 units.
1.  Determine the selling price per unit.  _____
2.  The number of units sold.  _____
Response: [none]

Correct answer: 12, 56800

Score: 0 out of 2 No

Question 10
Instructions:  Do not use comma and peso sign (i.e. if your answer is P20,500, encode it as 20500)
 
Problem: The Super Perfume Com will produce 800,000 bottles of 50 ml. of perfume. The
bottling department process will require 1,000 bottles for 30 minutes. The cost of labor is P60
per hour.
Required:  How much is the total direct labor cost?  _____
Response: [none]

Correct answer: 24000

Score: 0 out of 2 No

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