A sales budget (by quarter) for Excalibur Company is shown below:

1st quarter of 2003 24,000 units

2nd quarter of 2003 30,000 units
3rd quarter of 2003 32,000 units 
4th quarter of 2003 42,000 units
1st quarter of 2004 50,000 units
Four units of materials are used to produce one unit of product. Each unit of material costs P0.60.
The material inventory is to be equal to 25% of the production requirement for the next quarter. 
Accounts payable for materials purchases are estimated at P38,400 at the beginning of the current budget year.
It is estimated that the accounts payable at the end of each quarter will be equal to 40% of the purchases during the quarte
The company desires  to have an ending inventory of finished goods at the end of each quarter to 10% of the sales for the n

1. How many units will be produced for the year 2003?

1st Quarter 2nd Quarter 3rd Quarter
Sales 24,000 30,000 32,000
Add: Desired Ending Inventory 5,000 5,000 5,000
Total Goods Available for Sale 29,000 35,000 37,000
Less: Beginning Inventory - 5,000 5,000
Required Production (units) Php 29,000.00 Php 30,000.00 Php 32,000.00

2. How much would be the budgeted purchases of materials in the second quarter?
1st Quarter 2nd Quarter
Required Production (units) 29,000 30,000
Multiplied by: Raw Materials Required Per Unit 4 4
Raw Material Units Required for Production 116,000 120,000
Add: Desired Ending Inventory 7,500 8,000
Total Materials Available for Use 123,500 128,000
Less: Raw Materials, Beginning Inventory - 7,500
Required Raw Materials to be Purchased 123,500 120,500
Multiplied by: Direct Material Cost per Unit 0.60 0.60
Budgeted Materials Purchased Cost Php 74,100.00 Php 72,300.00
he current budget year.
of the purchases during the quarter. 
quarter to 10% of the sales for the next year. 

4th Quarter 2003

42,000 128,000
5,000 20,000
47,000 148,000
5,000 15,000
Php 42,000.00 Php 133,000.00

3rd Quarter 4th Quarter 2003

32,000 42,000 133,000
4 4 4
128,000 168,000 532,000
10,500 33,250 59,250
138,500 201,250 591,250
8,000 10,500 26,000
130,500 190,750 565,250
0.60 0.60 0.60
Php 78,300.00 Php 114,450.00 Php 339,150.00
Sales (units) 12,000
Beginning Inventory (units) 2,000
Ending Inventory (units)  1,500
Each unit of product requires 1.5 pounds of materials at a cost of P80/lb. And 3 hours of direct labor at a rate of P25/hour.
Variable overhead is P20/hour and fixed overhead is P12M a year. 

3. How much is the budgeted direct labor cost for April?

Expected Sales 12,000.00
Add: Desired Ending Inventory 1,500.00
Total Goods Available for Sale 13,500.00
Less: Beginning Inventory 2,000.00
Required Production (units) 11,500.00
Multiplied by: Direct Labor Time Per Unit 3.00
Direct Labor Hours Required for Production 34,500.00
Multiplied by: Direct Labor Cost Per Hour 25.00
Direct Labor Cost Php 862,500.00

4. How much is the budgeted factory overhead for April?

Direct Labor Hours Required for Production 34,500.00
Multiplied by: Variable Overhead Rate 20.00
Variable Overhead Cost 690,000.00
Add: Fixed Overhead Cost 1,000,000.00
Total Manufacturing Overhead Php 1,690,000.00
r at a rate of P25/hour.
Bogart Company is preparing a cash budget for the 3rd quarter of 200F. The following information is available:
Cash Sales Credit Sales 
May (actual) 72,000 40,000
June (actual) 84,000 60,000
July (budgeted) 88,000 70,000
August (budgeted) 90,000 60,000
September (budgeted) 85,000 50,000
70% of credit sales during the month are collected within the discount period of which 60% are collected in the same month and
30% of credit sales are collected after the discount period of which 70% are collected in the following month and the balance is
The cash balance on July 1 was P12,500. A loan for P10,000 taken on April 1, will be paid at the end of July. Credit terms for s

5. How much is the collection from Accounts Receivable for August?

Credit sales With Discount (70%) This Month (60%) Following Month (40%)
May 40,000 27,440 16,464 10,976
June 60,000 41,160 24,696 16,464
July 70,000 48,020 28,812 19,208
August 60,000 41,160 24,696 16,464
September 50,000 34,300 20,580 13,720

May June July

May Sales 16,464 19,376 3,600
June Sales 24,696 29,064
July Sales 28,812
August Sales
September Sales
Total Cash Collections Php 16,464.00 Php 44,072.00 Php 61,476.00

6. How much is the total collection for July?

Credit sales With Discount (70%) This Month (60%) Following Month (40%)
May 40,000 27,440 16,464 10,976
June 60,000 41,160 24,696 16,464
July 70,000 48,020 28,812 19,208
August 60,000 41,160 24,696 16,464
September 50,000 34,300 20,580 13,720

May June July

May Sales 16,464 19,376 3,600
June Sales 24,696 29,064
July Sales 28,812
August Sales
September Sales
Total Cash Collections Php 16,464.00 Php 44,072.00 Php 61,476.00
wing information is available:
Cash Expenses 
38,000
75,000
78,000
85,000
80,000
ich 60% are collected in the same month and the balance is collected in the following month.
ed in the following month and the balance is collected in the second month following. 
be paid at the end of July. Credit terms for sales are 2/10, n/30

After Discount (30%) Following Month (70%) Second Following Month (30%) Total
12,000 8,400 3,600 39,440
18,000 12,600 5,400 59,160
21,000 14,700 6,300 69,020
18,000 12,600 5,400 59,160
15,000 10,500 4,500 49,300

August September Quarter

39,440
5,400 59,160
33,908 6,300 69,020
24,696 29,064 53,760
20,580 20,580
Php 64,004.00 Php 55,944.00 Php 241,960.00

After Discount (30%) Following Month (70%) Second Following Month (30%) Total
12,000 8,400 3,600 39,440
18,000 12,600 5,400 59,160
21,000 14,700 6,300 69,020
18,000 12,600 5,400 59,160
15,000 10,500 4,500 49,300

August September Quarter

39,440
5,400 59,160
33,908 6,300 69,020
24,696 29,064 53,760
20,580 20,580
Php 64,004.00 Php 55,944.00 Php 241,960.00