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Projected Sales and Finished Goods Inventory Requirements

The budget summary includes: - A sales budget of P840,000 total for Ayko and Ayza products. - A production budget of 6,350 units for Ayko and 3,100 units for Ayza to meet sales and inventory goals. - Materials, direct labor, and production cost budgets are provided for Ayko and Ayza, including projected purchases, usage, and costs. The total production cost budget is P750,375.

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Kath Jornal
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316 views5 pages

Projected Sales and Finished Goods Inventory Requirements

The budget summary includes: - A sales budget of P840,000 total for Ayko and Ayza products. - A production budget of 6,350 units for Ayko and 3,100 units for Ayza to meet sales and inventory goals. - Materials, direct labor, and production cost budgets are provided for Ayko and Ayza, including projected purchases, usage, and costs. The total production cost budget is P750,375.

Uploaded by

Kath Jornal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Budgetary Planning Assignment 4

Butsoy Corporation manufactures two products - Ayko and Ayza. The budget committee gathered
the following data for the budget year 2021.

Projected Sales and Finished Goods Inventory Requirements :


Selling Expected Inventory
Product Units Price Dec. 31, 2020
Ayko 6,000 P 90 750
Ayza 3,000 100 400

Production requirements :
Ayko Ayza
Materials A 3 kgs. -
B 4 units 3 units
C - 3 pcs.

Direct Labor 5 hrs. 4 hours

Factory overhead

Materials Inventory Levels : Expected Inventory


Dec. 31, 2020
Materials A 450 kgs.
B 1,200 units
C 1,750 pcs

Fill out the answer sheet for the year 2021 Budgets:
Name Kathlene S. Jornal
Answer Sheet

a. Sales budget

Ayko
cted Inventory Desired Inventory Ayza
Dec. 31, 2021
1,100 b. Production budget (volume)
500 Sales budget
Desired Inventory
Expected Beg. Inventory
Cost Production budget
P 2 per kilo
4 per unit c. Materials purchase budget (quan
3 per piece
Production Need
10 per hour
Ayko
2.50 per direct
labor hour Ayza

cted Inventory Desired Inventory Total Materials Usage


Dec. 31, 2021 Desired Inventory
780 kgs. Expected Beg. Inventory
900 units Purchase budget (quantity)
1,400 pcs Unit Cost
Purchase budget
Material Usage

d. Direct labor budget


Production budget
Direct labor per unit
Production Hours
Cost per Hour
Direct labor budget

e. Production Cost budget


Production Hours
Factory Overhead rate per hour
Factory Overhead Cost budget
Materials Usage budget
Direct Labor budget
Production Cost Budget
ene S. Jornal William Co Bautista
Butsoy Corporation 2021 Operations Budget

Units Price Amount Total


6,000 90.00 540,000
3,000 100.00 300,000 840,000

uction budget (volume) Ayko Ayza


6,000 3,000
red Inventory 1,100 500
cted Beg. Inventory (750) (400)
uction budget 6,350 3,100

rials purchase budget (quantity and pesos)


Material A B C
uction Need
Volume Unit
3 6350 19,050
4 25,400
3 3100 9,300
3 9,300
Materials Usage
red Inventory 780 900 1,400
cted Beg. Inventory (450) (1,200) (1,750)
hase budget (quantity) 19,380 34,400 8,950
P 2.00 4.00 3.00
hase budget P 38,760 137,600 26,850
terial Usage 19,050 34,700 9,300

ct labor budget Ayko Ayza


uction budget 6,350 3,100
ct labor per unit 5 4
uction Hours 31,750 12,400
P 10.00 10.00
ct labor budget P 317,500 124,000

uction Cost budget Ayko Ayza Total


uction Hours 31,750 12,400
ory Overhead rate per hour 250.00 2.50
ory Overhead Cost budget P 79,375 31,000 110,375
rials Usage budget 133,400 65,100 198,500
ct Labor budget 317,500 124,000 441,500
uction Cost Budget P 530,275 220,100 750,375

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