Butsoy Corporation manufactures two products – Ayko and Ayza. The budget committee gathered the following data for the budgetyear 200.ProductАykoАyzaProjected Sales and Inventory Requirements:Units6,0003,000Selling PriceP 90100Expected Inventory, 12/31/20B750400Desired Inventory. 12/31/20C1,100500Production Requirements:CostP2 per kg.P4 per unitP3 per pieceP 3 per hourP5 per direct labor hourАyko3 kgs4 unitsAyzaMaterial:Beng 1Beng 2Beng 33 units3 pcs4 hoursDirect labor5 hoursFactory overheadMaterials Inventory LevelsBeng 1Beng 2Beng 3Expected Inventory, 12/31/20B450 kgs.1,200 units1,750 piecesDesired Inventory, 12/31/20C780 kgs.900 units1,400 piecesRequired: Prepare the following budgets:1. Sales budget2. Production budget (in units)3. Materials purchased budget in quantities and in pesos4. Direct labor budget5. Cost of goods sold budget (Assume a FIFO inventory system; unit costs of beginning inventory are P 40 for Aykoand P 65 for Ayza)

Budgeting:-Budget is the future estimated plan on which the company's management works. Businesses…

Butsoy Corporation manufactures two products - Ayko and Ayza. The budget committee gathered the following data for the budget year 200. Product Ayko Аyza Projected Sales and Inventory Requirements: Units 6,000 3,000 Selling Price P 90 100 Expected Inventory, 12/31/20B Desired Inventory, 12/31/200 750 400 1,100 500 Production Requirements: Ayko 3 kgs 4 units Cost P2 per kg. P 4 per unit P3 per piece P 3 per hour P5 per direct labor hour Ayza Material: Beng 1 Beng 2 Beng 3 3 units 3 pcs 4 hours Direct labor Factory overhead 5 hours Materials Inventory Levels Expected Inventory, 12/31/20B 450 kgs. 1,200 units 1,750 pieces Desired Inventory, 12/31/20C 780 kgs. 900 units 1,400 pieces Beng 1 Beng 2 Required: Prepare the following budgets: 1. Sales budget 2. Production budget (in units) 3. Materials purchased budget in quantities and in pesos 4. Direct labor budget 5. Cost of goods sold budget (Assume a FIFO inventory system; unit costs of beginning inventory are P 40 for Ayko and P 65 for Ayza)

Butsoy Corporation manufactures two products - Ayko and Ayza. The budget committee gathered the following data for the budget year 200. Product Ayko Аyza Projected Sales and Inventory Requirements: Units 6,000 3,000 Selling Price P 90 100 Expected Inventory, 12/31/20B Desired Inventory, 12/31/200 750 400 1,100 500 Production Requirements: Ayko 3 kgs 4 units Cost P2 per kg. P 4 per unit P3 per piece P 3 per hour P5 per direct labor hour Ayza Material: Beng 1 Beng 2 Beng 3 3 units 3 pcs 4 hours Direct labor Factory overhead 5 hours Materials Inventory Levels Expected Inventory, 12/31/20B 450 kgs. 1,200 units 1,750 pieces Desired Inventory, 12/31/20C 780 kgs. 900 units 1,400 pieces Beng 1 Beng 2 Required: Prepare the following budgets: 1. Sales budget 2. Production budget (in units) 3. Materials purchased budget in quantities and in pesos 4. Direct labor budget 5. Cost of goods sold budget (Assume a FIFO inventory system; unit costs of beginning inventory are P 40 for Ayko and P 65 for Ayza)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 1PB: Lens & Shades sells sunglasses for $37 each and is estimating sales of 21,000 units in January and...

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