Problem 6 (Production & Purchases Budget): William's Company is budgeting sales to 42,000 units of Product Y for the month of March. To make one unit of finished product, three kilos of raw material A are required Actual beginning and desired ending inventory of raw material A and Product Y are as follows: March 1 March 31 Raw Material A 100,000 kilos 110,000 kilos Product Y 22,000 units 24,000 units There is no work-in process inventory for Product Y at the beginning and end of March For the month of March, how many kilos of raw material A is William planning to purchase? Problem 7 (Direct Labor and Manufacturing Overhead Budget): The production budget of Washington Corporation's only product for the next three months follows: January February March 2,500 3,000 2,700 Each unit of Washington's product requires 2 direct labor hours, and the company pay P15 per direct labor hour. Washington's workforce is flexible, hence no need to account for any overtime or workforce adjustment. Also, the following items are the composition of Washington's manufacturing overhead: Indirect material, pounds per unit 0.25 Indirect material, cost per pound P2.00 Indirect labor hours Indirect labor rate per hour P16.50 Variable maintenance per unit 0.75 Variable utilities per unit 0.20 Supervisor salaries P 10.000 Maintenance salaries 9.000 Insurance 3.000 Depreciation 1,500 Required: Construct the direct labor and manufacturing overhead budget for the three months indicated. Problem 8 (Operational Budget - Comprehensive): Romblon Supply Corporation manufactures and sells cottons. Expected sales of cottons (in sacks) for upcoming months are as follows: June 36,000 October . 30,000 July . 40,000 November 24,000 August 50,000 December 35,000 September 38,000 2 | Module 2: Budgeting and ForecastingManagement likes to maintain a finished goods inventory equal to 25% of the next month's estimated sales. Required: 1. Prepare the company's production 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. 2. Construct a purchase budget considering that the manufacturing of each unit of finished goods requires 2 pounds of raw materials at an expected price of P4.00 per pound and an ending direct materials inventory of 10% of next quarter's production requirements is deemed sufficient 3. Construct a direct labor budget considering that two (2) hours of direct labor required for each unit and the company pay an hourly wage rate of P10.00 4. Construct the manufacturing overhead budget based on the following overhead costs that are expected to be incurred: Indirect Materials* P1.00 Supervisory Salaries* * P 20,000 Indirect Labor* 1.40 Depreciation** 3,800 Utilities* 0.40 Property Tax** 9,000 Maintenance* 0.20 Maintenance** 5,700 *per direct labor hours **per quarter 5. Construct the operating expenses budget based on the following selling and administrative costs that are expected to be incurred Office supplies* P.50 Rentals** P 10,000 Sales Commissions* .20 Advertising* * 7,000 Office Utilities* 0.10 Executive Salaries* * 18,000 Delivery* 0.20 Miscellaneous* * 5,000 *per unit sold **per quarter Problem 9 (Operational Budget Comprehensive): The budget department of Albay 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 @ P0.25 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 16% of gross sales Required: A production budget and a forecasted income statement - indicating the cost of goods sold computation. 3 | Module 2: Budgeting and ForecastingProblem 10 (Sales Budget and Cash Receipt): Albay Company is expecting to sell 10,000 cases in July, 20,000 cases in August, and 30,000 in September of 2021. Selling price per case is P30. All sales are on account. The sales are collected 20% in the month of sale, 50% in the month following sale and 30% in the second month following the sale. May and June sales totaled P 250,000 and P 200,000, respectively. Bad debts are negligible and can be ignored Required: 1. Prepare a sales budget. 2. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. 3. Determine the balance of the accounts receivable at September 30, 2021