{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-29T01:36:07-04:00", "answer_date": "2024-06-29 01:36:07", "is_docs_available": null, "is_excel_available": null, "is_pdf_available": null, "count_file_available": 0, "main_page": "student_question_view", "question_id": "4440681", "url": "\/study-help\/questions\/case-study-budgeting-abc-corporation-has-the-following-data-4440681", "question_creation_date_js": "2024-06-29T01:36:07-04:00", "question_creation_date": "Jun 29, 2024 01:36 AM", "meta_title": "[Solved] CASE STUDY - BUDGETING ABC Corporation ha | SolutionInn", "meta_description": "Answer of - CASE STUDY - BUDGETING ABC Corporation has the following data to be used in budgeting: MonthUnit Sales July20,000 Augu | SolutionInn", "meta_keywords": "case,study,-,budgeting,abc,corporation,data,monthunit,sales,july20,000,august35,000,september25,000", "question_title_h1": "CASE STUDY - BUDGETING ABC Corporation has the following data to be used in budgeting: MonthUnit Sales July20,000 August35,000 September25,000 October30,000 Sales price per unit", "question_title": "CASE STUDY - BUDGETING ABC Corporation has the following data to be", "question_title_for_js_snippet": "CASE STUDY BUDGETING ABC Corporation has the following data to be used in budgeting MonthUnit Sales July20,000 August35,000 September25,000 October30,000 Sales price per unit is P180 Plans are to have an inventory of finished product equal to 20 of the unit sales for the next month There was 4,000 units in beginning inventory on July 1st Three pounds of materials are required for each unit produced Each pound of material costs P20 Inventory levels for materials equal 30 of the needs for the next month Desired ending inventory for September is 25,200 pounds of material Beginning inventory for July was 20,700 pounds of material Each unit requires 0 6 hours of direct labor and the average wage rate is P16 per hour Variable overhead rate is P3 50 per direct labor hour There is also fixed overhead of P22,000 per month The company pays a 3 commission on sales Company has fixed selling and administrative expenses as follows Rent P6,000 month Utilities P1,200 month Advertising P400 month Office Salaries P35,000 month Requirements A Make a sales budget for July, August, and September and in total for the quarter B Make production budgets for July, August, and September and in total for the quarter C Make a direct materials purchases budget in pounds and dollars for July, August, and September and in total for the quarter D Make a direct labor budget in hours and total cost for July, August and September and in total for the quarter E Make an overhead budget for July, August and September and in total for the quarter F Make a selling and administrative expenses budget for July, August and September and in total for the quarter G Make an ending finished goods inventory budget for the quarter (Hint You have already calculated the desired ending finished goods inventory quantity Assume a stable per unit rate and round the per unit fixed factory overhead rate to two decimal places ) H Make a cost of goods sold budget for the quarter I Make a budged income statement for the quarter the company falls into the 35 tax bracket for income taxes you can base use this link for reference https www csus edu indiv p pforsichh documents masterbudgetingvideoslides pdf", "question_description": "

CASE STUDY - BUDGETING<\/strong><\/p>

<\/p>

ABC Corporation has the following data to be used in budgeting:<\/p>

MonthUnit Sales<\/p>

July20,000<\/p>

August35,000<\/p>

September25,000<\/p>

October30,000<\/p>

Sales price per unit is P180<\/p>

Plans are to have an inventory of finished product equal to 20% of the unit sales for the next month. There was 4,000 units in beginning inventory on July 1st.<\/p>

Three pounds of materials are required for each unit produced. Each pound of material<\/p>

costs P20. Inventory levels for materials equal 30% of the needs for the next month.<\/p>

Desired ending inventory for September is 25,200 pounds of material. Beginning inventory<\/p>

for July was 20,700 pounds of material.<\/p>

Each unit requires 0.6 hours of direct labor and the average wage rate is P16 per hour.<\/p>

Variable overhead rate is P3.50 per direct labor hour. There is also fixed overhead of<\/p>

P22,000 per month.<\/p>

The company pays a 3% commission on sales.<\/p>

Company has fixed selling and administrative expenses as follows:<\/p>

Rent P6,000\/month<\/p>

Utilities P1,200\/month<\/p>

Advertising P400\/month<\/p>

Office Salaries P35,000\/month<\/p>

<\/p>

Requirements:<\/strong><\/p>

<\/p>

A. Make a sales budget for July, August, and September and in total for the quarter.<\/p>

B. Make production budgets for July, August, and September and in total for the quarter.<\/p>

C. Make a direct materials purchases budget in pounds and dollars for July, August, and<\/p>

September and in total for the quarter.<\/p>

D. Make a direct labor budget in hours and total cost for July, August and September and in total for the quarter.<\/p>

E. Make an overhead budget for July, August and September and in total for the quarter.<\/p>

F. Make a selling and administrative expenses budget for July, August and September and in total for the quarter.<\/p>

G. Make an ending finished goods inventory budget for the quarter (Hint: You have already calculated the desired ending finished goods inventory quantity. Assume a stable per unit rate and round the per unit fixed factory overhead rate to two decimal places.)<\/p>

H. Make a cost of goods sold budget for the quarter<\/p>

I. Make a budged income statement for the quarter-the company falls into the 35% tax bracket for income taxes.<\/p>

<\/p>

<\/p>

you can base use this link for reference: https:\/\/www.csus.edu\/indiv\/p\/pforsichh\/documents\/masterbudgetingvideoslides.pdf<\/p>", "transcribed_text": "", "related_book": { "title": "Cost Management Measuring Monitoring And Motivating Performance", "isbn": "1118168879, 9781118168875", "edition": "2nd Canadian Edition", "authors": "Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/635f99b5717e0_1157.jpg", "uri": "\/textbooks\/cost-management-measuring-monitoring-and-motivating-performance-2nd-canadian-edition-1157", "see_more_uri": "" }, "free_related_book": { "isbn": "1349123641", "uri": "\/textbooks\/artificial-intelligence-in-operational-research-1st-edition-9781349123643", "name": "Artificial Intelligence In Operational Research", "edition": "1st Edition" }, "question_posted": "2024-06-29 01:36:07", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/the-expanding-universe-a-cosmologist-who-is-studying-the-light", "description": "The Expanding Universe a cosmologist who is studying the light from a galaxy bas identified the spectrum of hydrogen but finds that the wavelengths are somewhat shifted from those found in the...", "stars": 3 }, { "url": "\/study-help\/business-statistics-in-practice\/c-how-many-factors-are-involved-1982264", "description": "=+c) How many factors are involved?", "stars": 3 }, { "url": "\/bell-manufacturing-is-attempting-to-choose-the-better-of-two", "description": "Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firms warehouse capacity. 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