Wise Corporation manufactures and sells only one consumer good, product Hope. As of December 31, 2015, the Statement of Financial Position of the firm shows the following:

Current Assets

Cash P 111, 216,80

Accounts Receivable, net 327,283.20

Inventories 249,000.00

Other Current Assets 12,500.00 P700,000.00

Noncurrent

Assets Property, Plant and Equipment P 4,000,000.00

Accumulated Depreciation (800,000) 3,200,000.00

Total Assets P 3,900,000.00

Current Liabilities

Accounts Payable P 21,582.40

Income Tax Payable 105,000.00

Property Tax Payable 10,000.00

Bonds Payable (10%) 400,000.00 P 536,582.40

Noncurrent Liabilities

Bonds Payable (10%) 800,000.00

Total Liabilities P 1,336,582.40

Shareholder's Equity

Ordinary Share Capital (P100 par) P 2,000,000.00

Accumulated Profits 564,417.60 2,563,417.60

Total Liabilities and SHE P 3,900,000.00

During the last month of 2015 to the early weeks of January, 2016, the management has been gathering data for preparing the 2016 budget. Data gathered by the controller are as follows:

a) Marketing department projected to sell 12,500 units in the first quarter and expects to increase it by 10% per quarter for the next two years. The sales price is expected to be at P120/unit.

b) The company established some policies to guide operations throughout the year. For the production department, enough goods must be produced such that 20% of the goods expected to be sold in the next quarter will be on hand at end each current quarter.

Direct materials at the end of each quarter must be 30% of the direct materials requirement for the next quarter. Other data for production are as follows:

DM / unit :400g @ P5 per 100g DL / unit: 3hrs @ P10 per hr

Indirect Labor: P2 / unit Indirect Materials: P5 / unit

Utilities: P3 / unit + P55,000 per quarter Property Taxes :P5,000 per quarter

Depreciation: (50% building, 50% equipment) P50,000 per quarter

c) To attract customers, the company will be selling on normal credit terms, as usual. The company projected that 75% of sales will be collected during the quarter of sale, and the remaining will be collected in the following quarter, with 1% of total sales estimated as uncollectible.

d) Projected operating costs to be incurred per quarter are as follows:

Administrative Salaries P 50,000

Office Supplies 2,500

Depreciation - Office Equipment 10,000

Sales Salaries 40,000

Advertising 30,000

Sales Commission 3% of sales price

Store Supplies 2,000

Depreciation - Store Equipment 15,000

Depreciation - building (60% office; 40% sales 25,000

Property Taxes 5,000

e) Expenses are paid in cash except for direct materials of which 10% is paid the next quarter after it was purchased and property taxes which are paid in the quarter after property taxes are recognized. The company's policy is to maintain a minimum cash balance of P50,000 at all times, for any unforeseen cash requirements or any adjustments to be made.

f) Finished Goods of the last quarter of 2015 has a cost per unit of P69.

g) Other assets were all expensed in the first quarter of 2016.

h) Current portion of bonds payable matures every December 31. The firm will declare P10/share dividends on December 01 payable on January 31, 2017.

i) The firm is subject to 30% income tax which will be paid in the first week following each quarter of operations.

REQUIRED: Prepare the Master Budget of Wise Corporation for 2016 in a quarterly basis.