BUDGETING (ASSIGNMENT MATERIALS) Problem 1 (Sales Budget): Tagaytay Corporation is considering different methods of determining its budgeted sales as presented below: 1. On the first month, unit sales of 10,000 will be forecasted, and it will be increasing at a rate of 2,000 units per month. 2. A forecasted unit sales of 10,000 on the first month and increasing based on a monthly growth rate of 10%. 3. As per a forecasting technique, the forecasted units will be 10,000 on the first month, 14,000 units on the second month, and 12,000 on the third month. Required: Considering a selling price of P25, for each of the scenarios presented above, construct the sales budget for the first three months of the year. Problem ? (Production Budget): Laguna Corporation, a chair manufacturer, expects to sell 100 units during the upcoming year. Laguna presently has 10 chairs in inventory and desires to have an ending inventory of 40 chairs. Required: How many chairs must Laguna produce during the upcoming year? Problem 3 (Production Budget): Bulacan Company produces and sells a single product. Expected sales for the next four months are given below: Apri May June July Sales in units 10.000 12,000 15,000 9.000 The company needs a production budget for the second quarter. Experience indicate that end-of- month inventories should equal 10% of the following month's sales in units. At the end of March, 1,500 units were on hand. Required: Prepare the company's production budget for the second quarter of this year (the months of April, May, and June) in good form Include a column for each month and a total column for the entire quarter. Problem 4 (Purchase Budget): Davao Corporation's production budget for the next four months is given below: July August September October Production in units 15,000 18,000 20,000 16,000 Each unit of product uses five ounces of raw materials. At the of June, 11,250 ounces of material were on hand. The company wants to maintain an inventory of materials equal to 15% of the following month's production needs. Required: Prepare the company's purchase budget for the third quarter of this year (the months of July, August, and September) in good form. Include a column for each month and a total column for the entire quarter. 1 / Module 2: Budgeting and ForecastingProblem 5 (Purchase Budget): Batangas Corporation uses 3 pounds raw material to produce one finished unit of its principal product. Batangas expects to produce 20 units of its principal product. The company would like to have 12 pounds of Raw Materials at the end of the materials and will start the period with 10 pounds. Required: How many pounds of raw materials should it purchase during August and how much is the expected cost if the raw materials cost P1 per pound