Problem 1

The Monteartte Company has the following historical pattern of its credit sales:

60% collected in the month of sale

20% is collected in the first month after sale

12% is collected in the second month after sale

5% is collected in the third month after sale

3% uncollectible

The sales on open account have been budgeted for last six months of 2020 are shown

below:

July P 84,000 October P 125,000

August 90,000 November 140,000

September 110,000 December 120,000

1-1. The estimated total cash collection during the fourth calendar quarter would be

a. P 120,500

b. P 247,200

c. P 299,000

d. P 359,200

1-2. The estimated total cash collections during the fourth calendar quarter from salesmade during the fourth calendar quarter would be

a. P 120,500

b. P 247,200

c. P 299,000

d. P 359,200

Problem 2

Poppeyes Company desires an ending inventory of P62,000 and a beginning inventory of P55,000. Gross profit is estimated to be 25% of sales. The expected sales amounted to P320,000. Budgeted purchases would amount to:

a. P230,000

b. P240,000

c. P247,000

d. P370,000

Problem 3

Korkcichz Company's sales budget shows quarterly sales for the next year as follows:

Quarter Units Quarter Units

1 14,500 3 17,400

2 11,600 4 20,300

Company policy is to have a finished goods inventory at the end of each quarter equal to 20% of the net quarter's sales. Budgeted production for the second quarter of the next year would be

a. 10,440 units

b. 11,600 units

c. 12,180 units

d. 12,760 units

Problem 4

Bandeau Company manufactures a single product. It has a policy of keeping finished goods inventory amounting to 150% the coming month's budgeted sales. Raw materials, on the other hand, are kept at twice the coming month's budgeted production requirements. Each unit of product requires 4 kilos of raw materials.The production budgets (in units) consists of the following:

January 5,000 units

February 4,700 units

March 5,500 units

April 4,500 units

Purchases of raw materials in March would be

a. 15,600 kilos

b. 17,200 kilos

c. 18,000 kilos

d. 24,000 kilos

Problem 5

Each unit of Product A requires two direct labor hours. Employee benefit costs are

treated as direct labor costs. Data on direct labor are

No. of direct employees 25

Weekly productive hours per employee 35

Estimated weekly wages per employee P 12,250

Employee benefits (related to weekly wages) 20%

The standard direct labor cost per units of Product A is

a. P 840.00

b. P 945.00

c. P 1,323.00

d. P 1,653.75

Problem 6

Joju Company has budgeted sales of 60,000 units in July; 80,000 units in August; and120,000 in September. The Company has 6,000 units of finished goods and 49,600 piecesof raw materials on hand on July 1. Each unit of product requires 4 pieces of materials.The desired inventory of finished goods is 10% of the next month's sales. The desiredinventory of materials is 20% of the next month's production needs. Each raw material canbe purchased for P0.50 per material.

6-1. How many pieces of raw materials are purchased in July?

a. 248,000 pieces

b. 265,600 pieces

c. 345,600 pieces

d. 355,200 pieces

6-2. How much would be the purchases in July?

a. P 132,800

b. P 177,600

c. P 172,800

d. None