Solve for the requirements and choose the letter that best answers the question. Show your solutions.

Bugnot Corporation's budget includes the following data:

Budgeted sales	7,200
Inventories:	Beginning	Ending
Finished Goods	300	400
Work-in-process in equivalent units	60	160

1. How many equivalent units should Bugnot Corporation plan to produce during the budget period? a. 7,300 b. 7,400 c. 7,000 d. 7,200

Cudal Company prepared the following figures for its only product as a basis for its 2021 budget:

Budgeted sales	240,000 units
Selling price	P 5
Required materials per unit of product	2 pcs.
Materials beginning inventory	20,000 pcs.
Materials ending inventory	24,000 pcs.
Purchase price per piece of material	P 3
Finished goods beginning inventory	15,000 units
Finished goods ending inventory	18,000 units
Direct labor hours, per 1,000 units of product	60 hrs.
Direct labor rate per hour	P 30
Variable factory overhead rate per hour	P 10
Fixed factory overhead	P 300,000

2. The budgeted peso amount of materials purchases is? a. P 1.458,000

b. P 2,450,000 c. P 1,470,000 d. P 741,000

3. The total budgeted manufacturing cost for 2021 is? a. P 2,341,200 b. P 884,658 c. P 2,041,200 d. P 2,353,200

Pinugo Corporation is preparing its factory overhead cost budget for the third quarter of 2021. The management plans to produce 200,000 units for the said quarter. Past experience has shown that the company's product is produced at the rate of 4 units per hour. Variable rates per direct labor hour are as follows:

Indirect materials and supplies	P 0.76
Power	1.36
Repairs and maintenance	2.80
Other variable overhead	0.96
Total	P 5.88

Total fixed overhead cost is budgeted at P147,200. For product costing purposes, a fixed factory overhead rate of P3.20 per direct labor hour has been established.

4. How much is the total budgeted factory overhead for the quarter? a. P 417,680 b. P 454,000 c. P 441,200 d. P 294,000

5. The total factory overhead cost per unit of product is? a. P 1.47 b. P 11.35 c. P 36.32 d. P 2.27

6. Budgets are related to the following management functions, except a. planning b. control

c. performance evaluation d. none of the above

Bags Inc. manufactures leather bags with 3 zipper-type pockets. The company outsources the zippers at P8 unit. Each bag requires 5 direct labor hours to produce at a rate of P10 per hour. Budgeted sales of bags for the first quarter of the year and the first month of the following quarter are as follows:

January	900 units
February	1,000 units
March	1,500 units
April	1,800 units

Inventory data are as follows:

January 1:

Leather bags	360
Zipper	1,620

End of each month:

Leather bags	40% of the following month's budgeted sales
Zipper	60% of the following month's production requirement

7. What is the budgeted production of leather bags for the first quarter? a. 3,760 b. 3,040 c. 4,400 d. 3,400

8. What is the budgeted purchases of zipper for February? a. 2,844 b. 1,956 c. 4,356 d. 3,600

9. What is the total budgeted zipper and labor costs for the amount of March? a. P55,080 b. P29,160 c. P122,472 d. P119,880

10. Assume that on the average, a full-time factory worker works 188 hours per month and no overtime is allowed, how many full-time equivalent factory workers are needed to produce the budgeted output of leather bags in January? a. 5 b. 25 c. 100 d. 23.94

Nicely Wyn Corporation has the following budgeted production for four months:

April	50,000
May	40,000
June	45,000
Juy	60,000

Each unit of product requires 2 pieces of raw materials. The desired ending raw materials inventory for each month is 130% of the following month's production needs, plus 2,000 pieces. The April 1 inventory meets this requirement.

The product is processed in two departments: Department A and Department B. The direct labor standards are as follows:

	Hours per unit	Rate per hour	Labor Cost per Unit
Department A	6	P 30	P 180
Department B	2	P 40	P 80

11. What is the budgeted purchases of raw materials in June? a. 51,000 b. 84,000 c. 120,000 d. 129,000

12. What is the budgeted direct labor cost for the month of May? a. P 13,000,000 b. P 11,700,000 c. P 10,400,000 d. P 7,200,000

Medrano Corporation has the following sales budget for the second quarter of 2021:

April	P 988,00
May	P 1,248,000
June	P 1,664,000

Other budget estimates are as follows:

• Merchandise is to be sold at its invoice cost plus 30% markup.
• Beginning inventory of each month is to be 40% of that month's projected cost of goods sold.

13. The budgeted merchandise purchases for the month of May is? a. P 990,080 b. P1,088,000 c. P 960,000 d. P 832,000

14. Which of the following is not a primary purpose of preparing a budget? a. To communicate the company's plans throughout the entire business organization. b. To provide a basis for comparison of actual performance. c. To control revenues and expenses during a given period. d. To make sure that the company expands its operations.

15. Budgeting is a. the process of creating a formal plan and translating goals into a quantitative format. b. a technique for comparing actual costs with standard costs. c. a technique for determining the cost of manufactured products. d. a means of product costing that emphasizes activities as basic cost objects.