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