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Inventory Initial of January 10000 ltrs
Invetory final desired for January 15000 ltrsInvetory final desired for February 30000 ltrs
Invetory final desired for March 20000 ltrs
Scheduled production for three months is as follows:
Production in January 5000 productos
Production in February 9000 productos
Production in March 14000 productos
Perform:
EXERCISE 7.1
1) The company Alfas SA, used the Alpha-Omega component for the manufacture of its product, industrial coolant
(Polar Bear). For each item you need 2 liters of component, which is priced at $ 20 a liter. The company plans to
their level of inventories in advance, so that there are no shortages in inventory. The purchasing department has a
policy of ordering the raw material supplier on the first day of the month. Below are the following:
Assuming perform such plans, what would be the total cost of purchased materials in each of the first three
months? What would be the cost assuming the price remains constant during the first half?
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UNIT COST OF RAW MATERIAL 20.00$
RAW MATERIAL REQUIREMENTS FOR PRODUCT 2 ltrs
INV INITYAL JANUARY 10000 ltrs
IN FINAL DESIRED JANUARY 15000 ltrs
INV FINAL DESIRED FEBRUARY 30000 ltrs
INV FINAL DESIRED MARCH 20000 ltrs
JANUARY 5000 uni
FEBRUARY 9000 uni
MARCH 14000 uni
EXERCISE SOLUTION 7.1
VARIABLES
INVENTARIOS
PRODUCCION
MODEL
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JANUARY FEBRUARY MARCH
5000 9000 14000
2 ltrs 2 ltrs 2 ltrs
10000 ltrs 18000 ltrs 28000 ltrs
-10000 ltrs -15000 ltrs -30000 ltrs
+ INVENTORY FINAL OF RAW MATERIAL 15000 ltrs 30000 ltrs 20000 ltrs
= SHOPPING OF RAW MATERIALS 15000 ltrs 33000 ltrs 18000 ltrs
* UNIT COST OF RAW MATERIALS 20.00$ 20.00$ 20.00$
300,000$ 660,000$ 360,000$
JANUARY $ 140,000
FEBRUARY $ 140,000
MARCH $ 160,000
APRIL $ 200,000
Some balance sheet data at December 31, 2001:
= REQUIREMENT OF RAW MATERIAL BY REFRIGER
- INVENTORY INITIAL OF RAW MATERIAL
TOTAL COST OF REQUIREMENT OF RAW MATERIAL
EXERCISE 7.2
2) The company " Comercial del Sur SA", prepare their budgets for 2002. Here is some data from the company:
Sales forecast for 2002
Compaa Alfas S.A
Requirement of Raw Materials
REQUIRED PRODUCTION OF REFRIGERANT
*REQUIREMENT OF RAW MATERIAL BY EACH PROD
Sales 2002:
Balance Sheet 2001:
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CASH 10,000$
CUSTOMERS
November sales 36,000$
December sales 80,000$INVENTORY OF GOODS 52,000$
SUPPLIERS (GOODS) 45,000$
ADDITIONAL INFORMATION:
1er
mon
th
60%
2do
mon
th
40%
FEBRUARY MARCH TOTAL
JANUARY $ 140,000 84,000$ 56,000$ 140,000$
MARCH APRIL TOTAL
FEBRUARY $ 140,000 84,000$ 56,000$ 140,000$
APRIL MAY TOTAL
MARCH $ 160,000 96,000$ 64,000$ 160,000$
a) The sales are on credit. The 60% of sales is charged for the following month of the transaction, 40% to the second month after sales
Sales Charge:
% charged after the transaction
Sales 2002:
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MAY JUNE TOTAL
APRIL $ 200,000 120,000$ 80,000$ 200,000$
50% SALES
JANUARY $ 140,000 JANUARY $ 70,000
FEBRUARY $ 140,000 FEBRUARY $ 70,000
MARCH $ 160,000 MARCH $ 80,000
APRIL $ 200,000 APRIL $ 100,000
10% SALES
JANUARY $ 140,000 JANUARY $ 14,000
FEBRUARY $ 140,000 FEBRUARY $ 14,000
MARCH $ 160,000 MARCH $ 16,000
APRIL $ 200,000 APRIL $ 20,000
150%
JANUARY $ 70,000
FEBRUARY $ 70,000 JANUARY $ 105,000
MARCH $ 80,000 FEBRUARY $ 120,000
APRIL $ 100,000 MARCH $ 150,000
b) The cost of sales is 50% of sales
COST OF SALES =
Sales 2002: Cost of Sales 2002:
c) Other variable costs are 10% of sales, you pay the same month in which they are incurred.
R EXPENSES VAR =
Sales 2002: Other Expenses variables 2002:
d) The final inventory is 150% of what is required for sales the following month.
Inventory Final = SALES NEXT MONTH
Cost of Sales 2002: Inventory Final 2002:
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The Finals are made initial inventory for the next month
December $ 52,000
JANUARY $ 105,000 JANUARY $ 52,000
FEBRUARY $ 120,000 FEBRUARY $ 105,000
MARCH $ 150,000 MARCH $ 120,000
APRIL $ 150,000
WITH FIXED EXPEN 15,000$
DEPRECIATION = 5,000$
NO FIXED EXPENSE 10,000$
Perform:
1) Prepare a purchases budget for each of the first three months of 2002 and describe your procedure
2) Prepare an income statement for each of the first 4 months
30,000$ 10,000$
JANUARY FEBRUARY MARCH APRIL
Cost of Sales 70,000$ 70,000$ 80,000$ 100,000$
Inventory Final 2002: Inventory Initial 2002:
e) Purchases are paid the following month made
f) Fixed expenses are $ 15,000 per month. Includes $ 5,000 of depreciation expense
g) Top management will implement in 2001 a new policy on cash
3) Prepare a cash budget for each of the first four months of 2002, showing the balance before interest and ending balance
to December 31, 2002
4) It is assumed that May was a cash balance before financing of $ 30,000 How would you respond about the new policy from the general direction of the
minimum cash balance?
Cash balance = Ending balance in cash =
EXERCISE SOLUTION 7.2
SHOPPING BUDGETComercial del Sur S.A
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(+) Inventory Final 105,000$ 120,000$ 150,000$
(-) Inventory Initial (52,000)$ (105,000)$ (120,000)$
SHOPPING 123,000$ 85,000$ 110,000$ 100,000$
JANUARY FEBRUARY MARCH APRIL
Sales 140,000$ 140,000$ 160,000$ 200,000$
(-) Cost of sales (70,000)$ (70,000)$ (80,000)$ (100,000)$(=) Utility gross in sales 70,000$ 70,000$ 80,000$ 100,000$
(-) Fixed Expenses (15,000)$ (15,000)$ (15,000)$ (15,000)$
(-) Other variable costs (14,000)$ (14,000)$ (16,000)$ (20,000)$
(=) Utility in operations 41,000$ 41,000$ 49,000$ 65,000$
1er
mon
th
60%
STATE OF RESULTSComercial del Sur S.A
to December 31, 2002
Sales Charge
% charged after the transaction
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2do
mon
th
40%
SALES JANUARY FEBRUARY MARCH APRIL MAY
November 36,000$ 36,000$
December 80,000$ 48,000$ 32,000$
January 140,000$ 84,000$ 56,000$
February 140,000$ 84,000$ 56,000$
March 160,000$ 96,000$ 64,000$
TOTAL 556,000$ 84,000$ 116,000$ 140,000$ 152,000$ 64,000$
SHOPPING JANUARY FEBRUARY MARCH APRIL
December 45,000$ 45,000$
January 123,000$ 123,000$
February 85,000$ 85,000$
March 110,000$ 110,000$
TOTAL 363,000$ 45,000$ 123,000$ 85,000$ 110,000$
Comercial del Sur S.A
to December 31, 2002
COLLECTION SCHEDULEComercial del Sur S.A
to December 31, 2002
SCHEDULE OF PAYMENT A SUPPLIERS
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JANUARY FEBRERO MARCH APRIL
Beginning Cash Balance 10,000$ 25,000$ 14,000$ 10,000$
(+) Cash Check
Customer Billing 84,000$ 116,000$ 140,000$ 152,000$
(=) Available Cash 94,000$ 141,000$ 154,000$ 162,000$
(-) Cash Outputs
Payments to suppliers (45,000)$ (123,000)$ (85,000)$ (110,000)$
Fixed Expense (10,000)$ (10,000)$ (10,000)$ (10,000)$
Variable Expenses (14,000)$ (14,000)$ (16,000)$ (20,000)$(=) Inputs - Outputs 25,000$ (6,000)$ 43,000$ 22,000$
Surplus or missing (15,000)$ 16,000$ (33,000)$ (12,000)$
(=) FINAL BALANCE IN BOX 10,000$ 10,000$ 10,000$ 10,000$
loan 20,000$
Loan Payment 20,000$
Interest Payment 400$
12,600$
NOTE:
Loan multiple of 5 20,000$
(-) Dficit= (6,000)$
14,000$
BUDGET OF FLOW OF CASHComercial del Sur S.A
to December 31, 2002
EXERCISE 7.3
3) Thecompany "Leader SA" presents its balance sheet at December 31, 2001 and calls for the preparation of the statement of financial position budgeted for
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ASSETS LIABILITIES
CURRENT SHORT TERM
Cash 2,000$ suppliers 30,000$
Customers 15,000$ Notes payable 5,000$
Finished Goods Inventory 5,000$ TOTAL SHORT TERM 35,000$
TOTAL CURRENT 22,000$
LONG-TERM
NO CURRENT Obligations payable 5,000$
Ground 43,000$ TOTAL LIABILITIES 40,000$Building and Equipment 40,000$
Accumulated Depreciation 5,000$ CAPITAL ACCOUNTANT
TOTAL NON-CURRENT 78,000$ Capital contributed 40,000$
Capital cattle 20,000$
TOTAL CAPITAL 60,000$
TOTAL ASSETS 100,000$ TOTAL LIABILITIES + HERITAGE 100,000$
It also provides the following information:
2002:
BALANCE SHEET
At December 31, 2001
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1) The sales budget is $ 90,000
budgeted Sales = 90,000$
2)The materials budget required is equal to 25% of sales budget
budgeted Sales = 90,000$
Required MP = 25% Ventas presupuestadas
Required MP = 22,500$
3) The materials purchases budget is $ 32,000
Purchase Materials = 32,000$
4)The work budget is equal to 30% of budgeted sales
budgeted Sales = 90,000$
Labor = 30% Ventas presupuestadas
Labor = 27,000$
5) The budget of indirect manufacturing costs is 10% higher than the labor
budgeted Sales = 90,000$ Indirect manufacturing costs = 10% > MO
Indirect manufacturing costs = 2,700$ (+MO)
Labor = 30% budgeted Sales Indirect manufacturing costs = 29,700$
Labor= 27,000$
6) The operating expense budget is $ 7000
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Operating Expenses = 7,000$ Con deprec
2,000$
Operating Expenses = 5,000$ sin deprec
7) The desired ending inventory of finished goods is $ 4,600
Desired Ending Inventory of Finished Goods = 4,600$
8) 85% of 2002 sales are charged in that period while 15% will be charged on the following
collection:
02 = 85% Sales
03 = 15% Sales
2002 2003 TOTAL
budgeted Sales 90,000$ 76,500$ 13,500$ 90,000$
9) The 2001 account customers will be charged in 2002
Account Customers 2001 = -$
10) It will pay 80% of purchases of materials in 2002. The remaining 20% will be paid in the next period
Payments:
02 = 80%
03 = 20%
2002 2003 TOTAL
Compra de Materiales 32,000$ 25,600$ 6,400$ 32,000$
11)The budgeted depreciation is $ 2000 (corresponds to GIF)
Depreciation budgeted =
Purchase Materials
Purchase Materials
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2,000$
12) It will borrow $ 15,000 short-term
Short term loan = 15,000$
13)They settled accounts payable 2001
pay Suppliers 2001 = -$
14) The minimum cash balance that must be maintained is $ 2000
Minimum cash balance = 2,000$
PERFORM:
Prepare the Statement of Financial Position budgeted for 2002
Depreciation budgeted =
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STATEMENT COST OF SALES BUDGETED
Sales Raw Material Used
(-) Cost of Sales (+) Direct Labor
(=)Gross profit on sales (+) Manufacturing expenses
(-) Operating Expenses (=)COST OF PRODUCTION
(=) Operating Income (+) Opening Stock of Finished Goods
(=) Finished Goods Available
(-) Finished Goods Ending Inventory
(=) COST OF SALES
Raw Material Used 22,500$
(+) Direct Labor 27,000$
(+) Manufacturing expenses 29,700$
(=) COST OF PRODUCTION 79,200$
(+) Inventory Initial Finished Products 5,000$
(=) Finished Goods Available 84,200$
(-) Inventory Final of finished products (4,600)$
(=) COST OF SALES 79,600$
EXERCISE SOLUTION 7.3
COST OF SALES BUDGETEDEl Lder S.A
to December 31, 2002
CONCEPTUAL
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Sales 90,000$
(-) Cost of Sales (79,600)$
(=) Gross profit on sales 10,400$
(-) Operating Expenses (7,000)$
(=) Operating Income 3,400$
TICKETS 2002
Deferred revenues 76,500$
Collections of Cts x charge last year (2001) 15,000$
loan 15,000$
TOTAL ENTRIES 106,500$
DEPARTURES
Payments purchase of materials 25,600$
Accounts payable payment year (2001) 30,000$Salaries 27,000$
Manufacturing expenses 29,700$
Operating Expenses 5,000$
TOTAL OUTPUT 117,300$
(=) DIFFERENCE (10,800)$
(+) Initial Balance 2,000$
(=) Surplus or missing (8,800)$
(+) Funding 10,800$
STATEMENTEl Lder S.A
to December 31, 2002
CASH FLOW BUDGETEl Lder S.A
to December 31, 2002
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(=) BALANCE AL 31/12/2002 2,000$
ASSETS LIABILITIES
CURRENT SHORT TERM
cash 2,000$ suppliers 6,400$
customers 13,500$ Notes payable 30,800$
Final Inventory of RM 9,500$ TOTAL SHORT TERM 37,200$
Final Inventory of Pro. Fin. 4,600$
TOTAL CURRENT 29,600$ LONG-TERM
NO CURRENT Obligations payable 5,000$
ground 43,000$ TOTAL LIABILITIES 42,200$
Building and Equipment 40,000$
Accumulated Depreciation (7,000)$ CAPITAL ACCOUNTANT
TOTAL NON-CURRENT 76,000$ Capital contributed 40,000$
Capital cattle 23,400$
TOTAL CAPITAL 63,400$
TOTAL ASSETS 105,600$ TOTAL LIABILITIES + HERITAGE 105,600$
It asks:
El Lder S.A
Al 31 de Diciembre de 2002
EXERCISE 7.4
4)The company Dulcera Linares SA, produces several product lines, among which is that of filled chocolates. Because the company accountant is on vacation
and the only person who knows how to develop budgets requested the management accounting consultant to develop:
BALANCE SHEET BUDGETED
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a) Sales Budget
b)Production Budget
The data shown below are relevant:
FILLED CHOCOLATES
MATERIALS (Raw Material)
Chocolate 5 grs
filling 10 grs
Labor 5 min
The indirect manufacturing expense applied hours based direct labor
Budgeted Sales = 1000000 uni Chocolates per box = 25 uni
Price box = 50.00$ Price per chocolate = 2.00$
inventory 250000uniEnding inventory 2002 = 300000uni
The sales department estimates, based on market analysis and opinions of the sellers, sales of chocolates fil led for the next year wil l be 1000000 of
chocolates. Also, do know that the price is expected to sell the box is $ 50 and each box contains 25 chocolates.
The company's balance sheet at December 31, 2001, shows an inventory of 250000 300000 chocolates and chocolates are desired ending inventory to 2002
EXERCISE SOLUTION 7.4
SALES BUDGETDulcera Linares S.A
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projected Sales 1000000 uni
* Price 2.00$
SALES BUDGET 2,000,000$
projected Sales 1000000 uni
(+) Inv. Final of prod. Fin. 300000uni
(-) Inv. Initial of prod. Fin. -250000uni
REQUIRED PRODUCTION 1050000 uni
It asks:
a) The Production Budget
b) The Budget Raw Material Requirements
c) Materials Purchase Budget
d) The Budget Direct Labor
e) The Budget Indirect Manufacturing Costs
f) The Budget and Administrative Expense
g) The budget Ending Stocks
h) Cost of Goods Sold Budget
EXERCISE 7.5
5) Southern Plastics Company SA produces three lines of plastic pens: Fine Point, Midpoint and Punto Grande. The CEO is interested in hiring an expert to fill
the post of head of budgets, but first want to make sure that person knows the art to put in evidence which to draw:
REQUIRED PRODUCTION BUDGETDulcera Linares S.A
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This relevant information is provided:
component A
Component B
component C
Hours Direct Labor
Cost per hour of MOD
I budgeted Sales Sem 2001
Component B 2,000.00$ x kgr 2.00$ gr
Component A 100.00$ x kgr 0.1 gr
Component C 100.00$ x kgr 0.1 gr
2,000.00$ x kgr
5% Component B
100.00$
FEATHERS
MATERIALS FINE POINT midpoint BIG POINT
5 grs 5 grs 5 grs
0.05 0.03 0.06
1 gr 1 gr 1 gr
2 grs 3 grs 5 grs
The B component cost is $ 2000 per kg. Kilogram the cost of A is considered to be equal to 5% of the cost of a kilogram of B, the cost of the component C is
estimated as the cost of component A
MATERIALS COST COST
Component B =
Component A =
20.00$ 20.00$ 20.00$
500000 800000 400000
Component A =
The Sales department believes it would be desirable to have an inventory for the period 700000 feathers, composed as follows: 25% Fine Point, Midpoint
60% and 15% of Great Point.
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25% Inv. Final
60% Inv. Final
15% Inv. Final
Inventory Final
25% Inv. Final
60% Inv. Final
15% Inv. Final
Inventory Initial
Unit costs for each product line were $ 5.00 for Fine Point, $ 7.00 for middle and $ 12.00 for large point last year.
GREAT POINT=
FEATHERS
INVENTORY FINE POINT MIDPOINT GREAT POINT
Inventory Final = 700000 plumas
FINE POINT=
MIDPOINT =
FINE POINT=
MIDPOINT =
GREAT POINT=
FEATHERS
INVENTORY FINE POINT MIDPOINT GREAT POINT
175000 420000 105000
The stock of the year just completed an inventory of 500000 arrojn feathers, that is for each line the same percentage as the sales department for final
inventory estimates.
Inventory Initial= 500000 plumas
125000 300000 75000
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Last Year:
UNIT COST
Inventory Initial
Desired Ending Inventory
Indirect manufacturing expenses are as follows (applied on the basis of hours of direct labor):
MANUFACTURING OVERHEAD
Maintenance Costs 10,000$
insurance 7,000$
energy 80,000$
supervision 50% Mano de Obra
accessories 10,000$
depreciation 12,000$
The pomp and sales management will include
SELLING AND ADMINISTRATIVE EXPENSES
Salaries 35,000$ Commissions 10% SUELDOS
Commissions 3,500$
Stationery and office tilies 50,000$
depreciation 20,000$
Miscellaneous Expenses 40,000$
MATERIALS FINE POINT MIDPOINT GREAT POINT
Cost FINE POINT MIDPOINT GREAT POINT
1050000 gr 2080000 gr 998000 gr
900000 grs 800000 grs 700000 grs
5.00$ 7.00$ 12.00$
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projected Sales
(+) Finished Produc Final Inv
(-) Inv. Initial Finished Products
REQUIRED PRODUCTION
500000 plu 800000 plu 400000 plu
175000 420000 105000
EXERCISE SOLUTION 7.5
PRODUCTION BUDGETPlsticos del Sur S.A
FEATHERS
ACCOUNTS FINE POINT MIDPOINT GREAT POINT
BUDGET OF RAW MATERIAL REQUIREMENT
-125000 -300000 -75000
550000 plu 920000 plu 430000 plu
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GRAMS TOTAL REQUIRED PRODUCTION
Total required production kilograms
Cost per kilogram
TOTAL
Required Raw Material in Kg
(+) Desired Ending Inventory
(-) Initial Inventory
(=) Purchase of Raw Material
(*) Unit Cost
(=) TOTAL PURCHASES
Plsticos del Sur S.A
PRODUCT COMPONENT A COMPONENTB COMPONENT C
BIG POINT 430000 grs 2150000 grs 2150000 grs
1900000 grs 6010000 grs 9500000 grs
FINE POINT 550000 grs 1100000 grs 2750000 grsMIDPOINT 920000 grs 2760000 grs 4600000 grs
190,000.00$ 12,020,000.00$ 950,000.00$
SHOPPING BUDGET MATERIALPlsticos del Sur S.A
RAW MATERIAL A RAW MATERIAL B RAW MATERIAL C
1900 Kg 6010 Kg 9500 Kg
100.00$ 2,000.00$ 100.00$
-1050 -2080 -998
1750 Kg 4730 Kg 9202 Kg
1900 Kg 6010 Kg 9500 Kg
900 800 700
BUDGET DIRECT LABOR
100.00$ 2,000.00$ 100.00$
175,000$ 9,460,000$ 920,200$
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TOTAL
Planned Production
Hrs per UnitTotal hrs
Cost per hr
COST OF DIRECT LABOR
maintenance 10,000$
insurance 7,000$
energy 80,000$
supervision 809,000$
depreciation 12,000$
accessories 10,000$
TOTAL 928,000$
Plsticos del Sur S.A
FINE POINT MIDPOINT BIG POINT
27500 hrs 27600 hrs 25800 hrs 80900 hrs
20.00$ 20.00$ 20.00$
550000 plu 920000 plu 430000 plu
0.05 0.03 0.06
550,000.00$ 552,000.00$ 516,000.00$ 1,618,000$
BUDGET GIFPlsticos del Sur S.A
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Salaries 35,000$
Commissions 3,500$
Stationery and office tilies 50,000$depreciation 20,000$
Miscellaneous Expenses 40,000$
TOTAL 148,500$
TOTAL
TOTAL
Raw Material A
Raw Material B
Raw Material C
Labor
MANUFACTURING OVERHEAD
PRODUCT UNIT COST
BUDGET AND ADMINISTRATIVE EXPENSESPlsticos del Sur S.A
INVENTORY FINAL BUDGETPlsticos del Sur S.A
90,000$
1,600,000$
0.10$ 0.10$ 0.10$
4.00$ 6.00$ 10.00$
70,000$
1,760,000$
FINISHED GOODS INVENTORY FINAL BUDGETPlsticos del Sur S.A
COST PER UNIT
FINE POINT MIDPOINT BIG POINT
0.57$ 0.34$ 0.69$
6.17$ 7.54$ 12.488$
0.50$ 0.50$ 0.50$
1.00$ 0.60$ 1.20$
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RATEGIF = Total GIF
Hrs Totales
RATE GIF = 928,000$
80900 hrs
RATE GIF = 11.471 hrs
TOTAL
BIG POINT 1,311,450
TOTAL 5,558,000
INITIAL INVENTORY WANTED BUDGETPlsticos del Sur S.A
UNWANTED INVENTORY FINAL BUDGETPlsticos del Sur S.A
FINE POINT 1,079,750
MIDPOINT 3,166,800
3,625,000.00$
FINE POINT 625,000.00$
MIDPOINT 2,100,000.00$
BIG POINT 900,000.00$
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INITIAL INVENTORY FINISHED GOODS
(+) PRODUTIONRM
LABOR
MANUFACTURING OVERHEAD
(=) COST PRODUCTS AVAILABLE
(-) INV. FINAL FINISHED PRODUCT
(=) COST OF SALES
Statement
Cash Flow
Balance Sheet
Arm the Sales Budget
Arming the Production Budget
Arm Budget Direct Depletion
Arm Budget Raw Material Purchasing Direct
Arm Budget Direct Labor
Arm GIF Budget
Arming the Operating Expense Budget
Inventories Arm Budget
BUDGET COST OF SALESPlsticos del Sur S.A
3,625,000.00$
13,101,200$10,555,200$
1,618,000$
928,000$
16,726,200.00$
(2,953,200.00)$
13,773,000.00$
EXERCISE SOLUTION 7.6
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D Di Z D Di Z
SALES BUDGETED 10000 uni 6000 uni 5000 uni 5000 uni 4000 uni 5000 uni
(*) SALE PRICE 200.00$ 100.00$ 150.00$ 220.00$ 120.00$ 150.00$
TOTAL 2,000,000$ 600,000$ 750,000$ 1,100,000$ 480,000$ 750,000$
TOTAL SEMESTER
TOTAL ANNUAL
D Di Z D Di Z
SALES BUDGETED 10000 uni 6000 uni 5000 uni 5000 uni 4000 uni 5000 uni
SALES BUDGETLaboratorios Regionales S.A
I SEMESTER II SEMESTER
3,350,000$ 2,330,000$
5,680,000$
PRODUCTION BUDGETLaboratorios Regionales S.A
I SEMESTER II SEMESTER
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(+) INV FINAL 10000 uni 5000 uni 5000 uni 7000 uni 3000 uni 2000 uni
(-) INV INITIAL -10000 uni -5000 uni -5000 uni -10000 uni -5000 uni -5000 uni
PRODUCTION 10000 uni 6000 uni 5000 uni 2000 uni 2000 uni 2000 uni
D Di Z
PRODUCTION ANNUAL 12000 uni 8000 uni 7000 uni
RAW MATERIAL W MATERIAL RAW MATERIAL CRAW MATERIAL A W MATERIAL W MATERIAL C
D 150000 uni 60000 uni 90000 uni 30000 uni 12000 uni 18000 uni
Di 78000 uni 42000 uni 24000 uni 26000 uni 14000 uni 8000 uni
Z 50000 uni 30000 uni 25000 uni 20000 uni 12000 uni 10000 uni
TOTAL 278000 uni 132000 uni 139000 uni 76000 uni 38000 uni 36000 uni
COST BY KG 2.00$ 2.70$ 4.00$ 2.10$ 3.00$ 4.40$TOTAL 556,000$ 356,400$ 556,000$ 159,600$ 114,000$ 158,400$
BUDGET OF RAW MATERIAL REQUIREMENTLaboratorios Regionales S.A
I SEMESTER II SEMESTER
MATERIALS PURCHASE BUDGETLaboratorios Regionales S.A
ANNUAL
I SEMESTER II SEMESTER
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RAW MATERIAL W MATERIALRAW MATERIAL CRAW MATERIAL A W MATERIAL W MATERIALC
MATERIAL REQUIREMENT 78000 uni 42000 uni 24000 uni 26000 uni 14000 uni 8000 uni
FINAL INVENTORY WANTED 10000 15000 5000 8000 4000 3000
NEC TO BUY 88000 uni 57000 uni 29000 uni 34000 uni 18000 uni 11000 uni
INITIAL INVENTORY -10000 -15000 -5000 -10000 -15000 -5000TOTAL TO BUY 78000 uni 42000 uni 24000 uni 24000 uni 3000 uni 6000 uni
COST PER KG 2.00$ 2.70$ 4.00$ 2.10$ 3.00$ 4.40$
COST OF PROCUREMENT 156,000$ 113,400$ 96,000$ 50,400$ 9,000$ 26,400$
365,400$ 85,800$
D DI Z D DI Z
REQUEST FOR PRODUCTION 10000 uni 6000 uni 5000 uni 2000 uni 2000 uni 2000 uni
HRS REQUIRED BY PRODUCT 3 hrs 1 hrs 2 hrs 3 hrs 1 hrs 2 hrs
TOTAL HOURS 30000 6000 hrs 10000 hrs 6000 hrs 2000 hrs 4000 hrs
COST PER HOUR 10.00$ 10.00$ 10.00$ 11.00$ 11.00$ 11.00$
COST OF MOD 300,000$ 60,000$ 100,000$ 66,000$ 22,000$ 44,000$
TOTAL ANNUAL
TOTAL HORAS MOD
I SEMESTRE 460000
II SEMESTRE 132000
460000 HORAS
TOTAL MOD
I SEMESTRE 460,000$
II SEMESTRE 132,000$
592,000$
LABOR BUDGETLaboratorios Regionales S.A
I SEMESTER II SEMESTER
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592,000$
depreciation 100,000$
insurance 5,000$
maintenance 65,000$
energy 52,000$
several 10,000$
TOTAL 232,000$
RATE OF APPLICATI GIF
TOTAL HRS MOD
RATE OF APPLICATI 232,000$
58000 hrs
RATE OF APPLICATI 4.00$
depreciation 10,000$
Salaries and Wages 200,000$
Commissions 284,000$
several 13,000$
OVERHEAD BUDGET PRODUCTIONLaboratorios Regionales S.A
BUDGET AND ADMINISTRATIVE EXPENSESLaboratorios Regionales S.A
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Interest on obligations 30,000$
TOTAL 537,000$
Com 5% VENTAS PROYECTADASCom 284,000$
RAW MATERIAL REQUIRED 1,468,400$ 432,000$
(+) OD HAND 460,000$ 132,000$
(+) EXPENSES IF 116,000$ 116,000$
(=) COST OF PRODUCTION 2,044,400$ 680,000$(+) INV ART ORIGINAL ENDING
(=) ENDED ART AVAILABLE
(-) ART FINAL INVENTORY TERMIN
(=) COST OF SALES BUDGETED
2,724,400.00$150,000.00$
2,874,400.00$
(1,363,400)$
1,511,000.00$
STATEMENT BUDGETED
BUDGET COST OF SALESLaboratorios Regionales S.A
I SEMESTRE II SEMESTRE TOTAL
Laboratorios Regionales S.A
to December 31, 2002
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SALES
(-) Cost of sales(=) GROSS PROFIT
(-) OPERATING EXPENSES
(=) OPERATING INCOME
(-) 15% JOB SHARING
(=) TAXABLE
(-) 22% INCOME TAX
(=) NET INCOME
OPENING BALANCE
3,632,000$
(544,800)$
3,087,200$
(679,184.00)$
2,408,016.00$
5,680,000$
(1,511,000.00)$4,169,000$
(537,000)$
CASH FLOW STATEMENT BUDGETEDLaboratorios Regionales S.A
to December 31, 2002
50,000$
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(+) INFLOW
CHARGED SALES (90%) 5,112,000$
YEAR SALES 50,000$
TOTAL TICKET
(=) AVAILABLE(-) OUT OF CASH
PAYMENT OF MACHINERY 50,000$
CTS PAYMENT PAYABLE SUPPLIER 150,000$
TAX YEAR 50,000$
CURRENT YEAR TAX 679,184$
DIRECT LABOR 592,000$
GIF (WITHOUT DEPRECIATION) 132,000$
OPERATING EXPENSES (SIN depreciates) 527,000$
PAYMENT OF PURCHASES OF RAW MATERIAL (60%) 1,112,640$
TOTAL OUTPUT(=) CASH BALANCE
ASSETS LIABILITIES
(3,292,824)$1,919,176$
BALANCELaboratorios Regionales S.A
At December 31, 2001
5,162,000$
5,212,000$
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CURRENT SHORT TERM
cash 1,919,176$ suppliers 741,760$
customers 568,000$ Notes payable 544,800$
Material inventory 42,000$
Term Art Inventory 1,363,400$ TOTAL SHORT TERMTOTAL CURRENT 3,892,576$ LONG-TERM
NO CURRENT Obligations payable 150,000$
ground 550,000$ TOTAL LIABILITIES
Plant and Equipment 1,050,000$
Accumulated Depreciation (160,000)$ EQUITY
TOTAL NON-CURRENT 1,440,000$ Capital contributed
Capital won
Contribution to capital fut
TOTAL CAPITAL
TOTAL ASSETS 5,332,576$ TOTAL LIABILITIES + EQUITY
1,436,560$
1,390,380$
2,408,016$
97,620$
3,896,016$
5,332,576$
1,286,560$
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