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The Budget Committee is now ready with the budget estimates for the preparation of the Operating Budget of YAKANG-YAKA Company for the year 2022. The following data were presented below: Finished Product Model M 3,000 P 170 600 300 Model B Budget sales-units Selling price per unit Inventory, Beginning in units Expected inventory end in units 8,000 P 140 850 700 Inventory, Beginning in units Expected inventory end in units Material MI 5,000 3,500 Material M2 4,000 3,000 Material M3 3,000 3,600 Material Content of each unit: Material M1 Material M2 Material M3 Direct labor hours per unit Model B Model M 4 units 3 units 3 units 15 hours 6 units 4 units 2 units 10 hours Overhead is applied based on 100% of direct labor hours. Budgeted unit costs: | Material M1 | Material M2 P2.00 per unit | Material M3 2.50 per unit Direct labor P3.00 per uni 3.00 per hour Other budgeted data based on production are shown below: |Factory Overhead: Indirect labor Factory supplies Repairs and maintenance Other variable costs Factory supervision Factory rent Depreciation-equipment Other fixed costs |Selling and Administrative: P 91,200 P 84,000 39,400 29,500 24,000 120,000 48,000 12,000 8,100 Sales salaries 45,600 68,400 22,800 60,000 48,000 Sales commission Advertising expense Representation expense Officers' Salaries Office salaries 30,000 Office expenses 14,000 Miscellaneous expenses

The Budget Committee is now ready with the budget estimates for the preparation of the Operating Budget of YAKANG-YAKA Company for the year 2022. The following data were presented below: Finished Product Model M 3,000 P 170 600 300 Model B Budget sales-units Selling price per unit Inventory, Beginning in units Expected inventory end in units 8,000 P 140 850 700 Inventory, Beginning in units Expected inventory end in units Material MI 5,000 3,500 Material M2 4,000 3,000 Material M3 3,000 3,600 Material Content of each unit: Material M1 Material M2 Material M3 Direct labor hours per unit Model B Model M 4 units 3 units 3 units 15 hours 6 units 4 units 2 units 10 hours Overhead is applied based on 100% of direct labor hours. Budgeted unit costs: | Material M1 | Material M2 P2.00 per unit | Material M3 2.50 per unit Direct labor P3.00 per uni 3.00 per hour Other budgeted data based on production are shown below: |Factory Overhead: Indirect labor Factory supplies Repairs and maintenance Other variable costs Factory supervision Factory rent Depreciation-equipment Other fixed costs |Selling and Administrative: P 91,200 P 84,000 39,400 29,500 24,000 120,000 48,000 12,000 8,100 Sales salaries 45,600 68,400 22,800 60,000 48,000 Sales commission Advertising expense Representation expense Officers' Salaries Office salaries 30,000 Office expenses 14,000 Miscellaneous expenses

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 3PA: Budgeted income statement and supporting budgets The budget director of Birding Homes Feeders Inc.,...
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Selling and Administrative: Sales salaries Factory Overhead: Indirect labor Factory supplies Repairs and maintenance Other variable costs Factory supervision Factory rent Depreciation-equipment P 91,200 45,600 68,400 22,800 60,000 48,000 30,000 14,000 P 84,000 39,400 29,500 24,000 120,000 48,000 12,000 8,100 Sales commission Advertising expense Representation expense Officers' Salaries Office salaries Office expenses Miscellaneous expenses Other fixed costs Income taxes are estimated at 20%. Finished goods inventory beginning is P126,000. There is no beginning and ending work-in-process inventory. Required: Prepare the Operating Budget of YAKANG-YAKA Company for the year 2022 to include the following: a. Sales Budget b. Production Budget c. Direct Materials Purchases Budget d. Direct Labor Budget e. Factory Overhead Budget f. Selling and Administrative g. Ending Inventory Budget h. Cost of Goods Sold Budget i. Projected Income Statement
Transcribed Image Text:Selling and Administrative: Sales salaries Factory Overhead: Indirect labor Factory supplies Repairs and maintenance Other variable costs Factory supervision Factory rent Depreciation-equipment P 91,200 45,600 68,400 22,800 60,000 48,000 30,000 14,000 P 84,000 39,400 29,500 24,000 120,000 48,000 12,000 8,100 Sales commission Advertising expense Representation expense Officers' Salaries Office salaries Office expenses Miscellaneous expenses Other fixed costs Income taxes are estimated at 20%. Finished goods inventory beginning is P126,000. There is no beginning and ending work-in-process inventory. Required: Prepare the Operating Budget of YAKANG-YAKA Company for the year 2022 to include the following: a. Sales Budget b. Production Budget c. Direct Materials Purchases Budget d. Direct Labor Budget e. Factory Overhead Budget f. Selling and Administrative g. Ending Inventory Budget h. Cost of Goods Sold Budget i. Projected Income Statement
The Budget Committee is now ready with the budget estimates for the preparation of the Operating Budget of YAKANG-YAKA Company for the year 2022. The following data were preseted below: Finished Product Model B 8,000 P 140 Model M 5,000 P 170 Budget sales-units Selling price per unit Inventory, Beginning in units Expected inventory end in units 850 600 700 500 Inventory, Beginning in units Expected inventory end in units Material MI 5,000 5,500 Material M2 4,000 5,000 Material M3 3,000 3,600 Model B Model M 4 units 3 units 3 units 15 hours Material Content of each unit: Material M1 Material M2 Material M3 Direct labor hours per unit 6 units 4 units 2 units 10 hours Overhead is applied based on 100% of direct labor hours. Budgeted unit costs: Material M1 Material M2 per unit Material M3 2.50 per unit Direct labor P2.00 Р.00 per uniti 3.00 per hour Other budgeted data based on production are shown below: Factory Overhead: Indirect labor Factory supplies Repairs and maintenance Other variable costs Factory supervision Factory rent Depreciation-equipment Other fixed costs P 91,200 45,600 68,400 22,800 60,000 48,000 30,000 14,000 Selling and Administrative: Sales salaries Sales commission Advertising expense Representation expense Officers' Salaries Office salaries Office expenses Miscellaneous expenses P 84,000 39,400 29,500 24,000 120,000 48,000 12,000 8,100 f
Transcribed Image Text:The Budget Committee is now ready with the budget estimates for the preparation of the Operating Budget of YAKANG-YAKA Company for the year 2022. The following data were preseted below: Finished Product Model B 8,000 P 140 Model M 5,000 P 170 Budget sales-units Selling price per unit Inventory, Beginning in units Expected inventory end in units 850 600 700 500 Inventory, Beginning in units Expected inventory end in units Material MI 5,000 5,500 Material M2 4,000 5,000 Material M3 3,000 3,600 Model B Model M 4 units 3 units 3 units 15 hours Material Content of each unit: Material M1 Material M2 Material M3 Direct labor hours per unit 6 units 4 units 2 units 10 hours Overhead is applied based on 100% of direct labor hours. Budgeted unit costs: Material M1 Material M2 per unit Material M3 2.50 per unit Direct labor P2.00 Р.00 per uniti 3.00 per hour Other budgeted data based on production are shown below: Factory Overhead: Indirect labor Factory supplies Repairs and maintenance Other variable costs Factory supervision Factory rent Depreciation-equipment Other fixed costs P 91,200 45,600 68,400 22,800 60,000 48,000 30,000 14,000 Selling and Administrative: Sales salaries Sales commission Advertising expense Representation expense Officers' Salaries Office salaries Office expenses Miscellaneous expenses P 84,000 39,400 29,500 24,000 120,000 48,000 12,000 8,100 f
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