The following information has been gathered by the budget director of Joshua Company, another outfit managed by Aaron Inc.. The firm manufactures and sells only one product. The selling price is P 15 per unit. Expected sales during the month 50,000 units of finished goods. Finished goods at the beginning and end of the month is 22,000 and 20,000 units respectively.

Direct labor costs P 4 per hour. One half of an hour is required to manufacture each unit of finished product. Factory Overhead is applied to work-in process on the basis of direct labor hours. Variable factory expense at the planned level of operations is expected to amount to P 72,000; fixed overhead is expected to amount to P 120,000.

The raw materials expected to be on hand at the beginning of the month total 6,000 gallons. Only one kind of raw material is used to produce the finished product. Two and one half gallons of raw materials are needed to manufacture each unit of finished product. Raw materials are expected to cost P 1.10 per gallon during the coming month, its prevailing cost. Raw materials expected to be on hand at the end of the month total 4,000 gallons. Variable administrative and selling expenses is P 1.00 per unit. In assisting the company to formulate the budget, your determined the following budget parameters:

1. The total expected peso sales should be:
2. Finished goods in units to be produced during the month is:
3. Budgeted cost of raw materials to be used in the production is
4. Budgeted raw materials purchases cost is:
5. Budgeting direct labor cost is
6. Variable overhead per direct labor hour is
7. Fixed overhead cost per direct labor hour is
8. Budgeted contribution margin is
9. Budgeted cost of goods sold (full cost) is:
10. Income before tax is

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