Reference no: EM132879435

Khuha Hito, Inc., expects to sell 6,000 ceramic vases for P40 each. Direct materials costs are P4, direct manufacturing labor is P20, and manufacturing overhead is P6 per vase.

The following inventory levels apply to 2011:

                                      Beginning inventory                   Ending inventory
Direct materials                 1,000 units                       1,000 units
Work-in-process inventory      0 units                            0 units
Finished goods inventory        400 units                        500 units

Problem 1: On the 2012 budgeted income statement, what amount will be reported for sales?

A) P244,000
B) P236,000
C) P280,000
D) P240,000

Problem 2: How many ceramic vases need to be produced in 2012?

A) 5,900 vases
B) 6,100 vases
C) 7,000 vases
D) 6,000 vases

Problem 3: On the 2012 budgeted income statement, what amount will be reported for cost of goods sold?

A) P183,000
B) P210,000
C) P180,000
D) P177,000

Problem 4: What are the 2012 budgeted costs for direct materials, direct manufacturing labor, and manufacturing overhead, respectively?

A) P24,400; P122,000; P36,600
B) P24,000; P120,000; P36,000
C) P4,000; P20,000; P6,000
D) P4,000; P0; P9,000