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Add: Desired Ending Raw Materials Inventory (130% From Following Month's Production and 2000

The document provides a budget for production and raw materials for Nicely Wyn Corporation over 4 months. It shows that in June, the budgeted production is 45,000 units which requires 90,000 pieces of raw materials. The desired ending inventory is calculated as 130% of the following month's needs (120,000 for July) plus 2,000, which equals 158,000 pieces. Therefore, the budgeted purchases of raw materials for June is 248,000 pieces. It also provides the direct labor budget for June, which at a rate of 30/hour for Department A and 40/hour for Department B equals a total direct labor cost of ₱64,480,000.

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Kyla Kim Arias
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1K views4 pages

Add: Desired Ending Raw Materials Inventory (130% From Following Month's Production and 2000

The document provides a budget for production and raw materials for Nicely Wyn Corporation over 4 months. It shows that in June, the budgeted production is 45,000 units which requires 90,000 pieces of raw materials. The desired ending inventory is calculated as 130% of the following month's needs (120,000 for July) plus 2,000, which equals 158,000 pieces. Therefore, the budgeted purchases of raw materials for June is 248,000 pieces. It also provides the direct labor budget for June, which at a rate of 30/hour for Department A and 40/hour for Department B equals a total direct labor cost of ₱64,480,000.

Uploaded by

Kyla Kim Arias
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

387-37/38

Nicely Wyn Corporation has the following budgeted production for four months :
April 50,000
May 40,000
June 45,000
July 60,000
Each unit of product requires 2 pcs of raw materials. The desired ending raw materials inventory
for each month is 130% of the following month's production needs , plus 2,000 pieces.
(The April 1 inventory meets this requirement )

Materials Budget
April May
Budgeted Production 50,000 40,000
Standard Raw Materials 2 2
Production Requirement 100,000 80,000
Add: Desired ending raw materials inventory
(130% from following month's production and 2000 106,000 119,000
Total materials Needed 206,000 199,000

Department A
Direct Labor Budget
April May
Units to be produced 206,000 199,000
x 6 DL hour per unit 6 6
Direct labor hours required 1,236,000 1,194,000
x 30 rate per hour 30.00 30.00
Budgeted Direct Labor 37,080,000.00 35,820,000.00

Department B
Direct Labor Budget
April May
Units to be produced 206,000 199,000
x 2 DL hour per unit 2 2
Direct labor hours required 412,000 398,000
x 40 rate per hour 40.00 40.00
Budgeted Direct Labor 16,480,000.00 15,920,000.00

The product is processed in two departments (Dept. A and B) and the direct labor standards are
as follows :
Hrs/unit Rate/hr Labor cost /unit
Dept . A 6 30 180
Dept B 2 40 80

1- What is the budgeted purchases of raw materials in June ? 248,000


2- What is the budgeted direct labor cost for the month of June ? ₱ 64,480,000.00
June July
45,000 60,000
2 2
90,000 120,000

158,000
248,000

June
248,000
6
1,488,000
30.00
₱ 44,640,000.00

June
248,000
2
496,000
40.00
₱ 19,840,000.00
392-54 BY Co produces and sells two types of deodorants : the Roll on type
and spray type . For the month of May , budgeted sales are :
Roll on 5,000 boxes @500/box
Spray 8,000 boxes @ 600 /box
The deodorants are sold through sales agents who receive sales commissions
provided they meet their sales quota for the month . The rates of commission and sales quota are as follows :

Rate of Commission Sales quota


paid on total sales
Roll on 5% 2,000,000
Spray 6% 5,000,000

Compute for the amount of sales commission to be budgeted for the month of May .

Roll On Spray
Sales units 5,000 8,000
Selling price per box 500 600
Total Sales 2,500,000.00 4,800,000.00
Sales Commission rate 5% 0
Budgeted Sales Commission ₱ 125,000.00 -
es quota are as follows :

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