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Need help with Req. b,c, and e Problem: ABC Company makes one (1) product. Its sales price is expected to be P80 per unit. Actual

Need help with Req. b,c, and e image text in transcribed

Problem: ABC Company makes one (1) product. Its sales price is expected to be P80 per unit. Actual sales for November 201A are 6,200 units, and 6,800 units for December 201A. ABC budgets its sales for the next six (6) months for 201B: January 5,400 April 5,000 February 5,200 May 5,800 March 5,500 June 6,000 All sales are on account. ABC collects its accounts as follows: 50% in the month of sale 30% in the month following sale 15% in the second month following sale Uncollectible accounts are negligible and can be disregarded. The beginning inventory on January 1, 201B is 580 units. ABC desires an ending inventory of 15% of the next month's budgeted sales. Each unit of finished goods requires 3 kg of raw material that cost P5.00/kg. ABC desires an ending inventory of direct materials equal to 20% of the following month's production needs. Assume that ABC met this requirement at the end of December, 201A. ABC makes all purchases on account and pays its accounts payable as follows: 70% in the month of purchase and 30% in the month following purchase. Purchases in December 201A were P80,000. Required: Prepare the following by month for the first quarter of 201B and for the first quarter as a whole. a. Sales budget b. Production budget C. Purchases budget d. Schedule of cash receipts e. Schedule of cash disbursements

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