Activity No. 12 Master Budget ComputationFurniture Manufacturing Company - School Desk DivisionScholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that aresold to public school systems throughout the Philippines. The controller of the company's DeskDivision is currently preparing a budget for the thrid quarter of the year. The following forecasthas been made by the division's sales manager.Sales Budget - Sales Price = P600/setAugustP60,000JulySeptemberOctoberP54,000P75,000P90,000Based on the information below, prepare the company's third quarter budget of the following:A. SalesB. Production.• Desired ending inventory (finished sets) is equal to 20% of next month's budgeted salesC. Raw Material Purchases• 10 board feet per set• Desired ending inventory (board feet) = 10% of next month's use of board feet• Cost of raw material purchases = P6.00/board footD. Direct Labor BudgetDirect labor hours per set = 1.5Direct labor cost per hour - P210.00

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Description: Activity No. 12 Master Budget ComputationFurniture Manufacturing Company - School Desk DivisionScholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that aresold to public school systems throughout the Philippine

Budgeting is an Estimation of Expected Expenses or a particular production to be need in Future.…

Business

Accounting

Activity No. 12 Master Budget Computation Furniture Manufacturing Company - School Desk Division Scholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Philippines. The controller of the company's Desk Division is currently preparing a budget for the thrid quarter of the year. The following forecast has been made by the division's sales manager. Sales Budget - Sales Price = P600/set July August September October P54,000 P60,000 P75,000 P90,000 Based on the information below, prepare the company's third quarter budget of the following: A. Sales B. Production. • Desired ending inventory (finished sets) is equal to 20% of next month's budgeted sales C. Raw Material Purchases • 10 board feet per set • Desired ending inventory (board feet) = 10% of next month's use of board feet • Cost of raw material purchases = P6.00/board foot D. Direct Labor Budget • Direct labor hours per set = 1.5 • Direct labor cost per hour - P210.00

Activity No. 12 Master Budget Computation Furniture Manufacturing Company - School Desk Division Scholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Philippines. The controller of the company's Desk Division is currently preparing a budget for the thrid quarter of the year. The following forecast has been made by the division's sales manager. Sales Budget - Sales Price = P600/set July August September October P54,000 P60,000 P75,000 P90,000 Based on the information below, prepare the company's third quarter budget of the following: A. Sales B. Production. • Desired ending inventory (finished sets) is equal to 20% of next month's budgeted sales C. Raw Material Purchases • 10 board feet per set • Desired ending inventory (board feet) = 10% of next month's use of board feet • Cost of raw material purchases = P6.00/board foot D. Direct Labor Budget • Direct labor hours per set = 1.5 • Direct labor cost per hour - P210.00

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 2PA: Sales, production, direct materials purchases, and direct labor cost budgets The budget director of...

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