The sales estimate for the first four months of 2008 are as follows:
There are 30,000 units on hand as of December 31, 2007. It has been the practice of the company to maintain its stock at 20% of the succeeding month’s sales requirement plus 8,000 units.
Production budget for the first three months of 2008.
The following information are obtained for the purpose of preparing a master budget for Corus Chess Corporation for the year 2008:
The budgeted sales volumes are as follows:
2008:First quarter 60,000 units2009: First quarter90,000 units
Second quarter 80,000 Second quarter 100,000
The selling price per unit of P36 is expected to be increased by 10% in the third quarter.
The company has 12,000 units of finished goods on January 1, 2008. The stock level is maintained at 8,000 units plus 1/5 of the sales requirement for the next quarter.
The standard prime cost of the single product of ISAFP consists of:
Raw materials:5 lbs./unit @ 3.20/lb.
Direct labor:3 hours/units @ 1.50/lb
On January 1, 2008, the company had 28,000 lbs. of raw materials. The stock level is maintained at 15% of the production requirement for the next quarter plus 20,000 lbs.
Variable factory overhead and selling expenses for one year are budgeted as follows:
Factory OverheadSelling Expenses
150,000 units P2,500,000 P1,400,000
240,000 units P3,400,000 P1,940,000
The annual fixed overhead is 1,800,000. General and administrative expenses are estimated to be constant at 720,000 per annum.
1. Sales budget
2. Production budget
3. Materials cost budget
4. Materials purchases budget
5. Direct labor budget
6. Factory overhead budget...