1. Your Company has 12,000 units capacity and projected to produce and sell 10,000 units at P60per unit for Year 20XY. Standard budgeted cost per unit: variable cost P22.50 and fixed costP14.50. Sometime 3rd quarter of 20XY, there is a special order for 500 units for P45 selling price.

Should the company accept the special order, and why? What could be the implications?

2. The total estimated sales for the coming year is 260,000 units. The estimated inventory at thebeginning of the year is 32,500 units, and the desired inventory at the end of the year is 50,000units. What is the total production units to be indicated in the production budget?

3. Datan Company expects $550,000 of credit sales in March and $600,000 of credit sales in April.Datan historically collects 70% of its sales in the month of sale and 30% in the following month.

How much cash does Datan expect to collect in April?

4. Phil Carter, President of Carter Computer Components, Corp. has the option of shippingcomputer transformers from its Singapore plant via container ship or airfreight. The typicalshipment has a value of $75,000. A container ship takes 24 days and costs $5,000; airfreighttakes 1 day and costs $8,000. Holding cost is estimated to be 40% or $82.19 per day in eithercase. How should shipments be made and why?

5. Project X is estimated to generate cash flows of $40,000 per year for 10 years. The cost of theproject is $226,009. Project X is expected to improve the competitiveness of the company asleader in the industry. It is the policy of the company to approve only capital investment withpayback of five years or lower and IRR of at least 13%.

a. What is the internal rate of return for this project?

b. What is the payback period in years?

c. Should the project be approved and why?

6. Heartbeat Manufacturing Company (HMC) allows employees to purchase, at cost, constructionm materials such as metal and lumber, for personal use. To purchase materials for personal use,an employee must finish a materials requisition form, which must then be approved by theemployee's immediate supervisor. Ms You, an assistant cost accountant, charges the employeean amount based on HMC's net purchase cost.

Ms You is in the process of replacing a deck on her home and has requisitioned lumber forpersonal use, which has been approved in accordance with company policy. In computing thecost of the lumber, Ms You reviewed all the purchase invoices for the past year. She then usedthe lowest price to compute the amount due the company for the lumber.

Discuss whether Ms You behaved in an ethical manner.