FINANCIAL PLANNING & BUDGETING

PROBLEM 1

The budget department of Seri Company prepared these estimates for the coming year:

Beginning Ending Inventories ( Annual) Raw Materials (in units) 5,000 6,000 Finished Goods ( in units) 10,000 7,000 Sales (Gross) 100,000 units Average Sales price per unit P4.00 Raw materials, unit usage rate & cost: 2 raw materials per unit @ PO.25 per raw material Direct labor, per unit of finished product: P1.00 Factory overhead rate per unit 150%% of direct labor cost Marketing and administrative expenses 169% of gross sales