The Scarborough Corporation manufactures and sells to products two products, One and To.

In July, 2014, the Scarborough's b

in order to project sales and budget requirements for 2015.

2015 Projected Sales:

Products Units Price
One 60,000 70.00
Two 40,000 100.00

2015 Inventory in Units: Expected

Product Jan-15 Dec-15
One 20,000 25,000
Two 8,000 9,000

In order to produce one unit of One and Two, the following raw materials are used:
Amount used per unit
Material Unit One Two
A kilos 4 5
B kilos 2 3
C each - 1

Projected data for 2015 with respect to materials is as follows:

Raw Material Expected Purchase Expected Inventory Jan Desired Inventory Dec
Price 2015 2015
A 8.00 32,000 kilos 36,000 kilos
B 5.00 29,000 kilos 32,000 kilos
C 3.00 6,000 each 7,000 each

Projected direct labor requirements for 2015 and rates follow:

Product Hours per unit Rate per hour
One 2 3.00
Two 3 4.00

Overhead is applied at the ate of P2.00 per direct labor hour.

Required: Based on the above projections and budget requirements for 2015 for One and Two, prepare the following budgets f
1. Sales budget (in pesos)
2. Production budget (in units)
3. Raw materials usage budget (in quantities)
4. Raw materials purchase budget (in pesos)
5. Direct labor budget (in pesos)
6. Compute budgeted cost per unit then prepare a budgeted finished goods inventory at December 31, 2015 (in pesos)

Note: Create a separate worksheet for each budget with appropriate presentation heading and titles.
n July, 2014, the Scarborough's budget department gathered the following information

, prepare the following budgets for 2015:

mber 31, 2015 (in pesos)

1. Sales budget (in pesos)

Scarborough Corporation
Revenue Budget for 2015

Products Units
One 60,000
Two 40,000

2. Production budget (in units)

Scarborough Corporation
Production Budget (in units) for 2

Product Units Dec-15

One 60,000 25,000
Two 40,000 9,000

3. Raw materials usage budget (in quantities)

Scarborough Corporation
Raw materials usage budget (in qu

Materials to be used in production A

Product One
(budgeted production of 65,000 units
times 4 kl of A, 2 kl of B, and 0 kl of C) 260,000

Product Two
(budgeted production of 41,000 units
times 5 kl of A, 3 kl of B, and 1 kl of C) 205,000

Total 465,000
Desired Inventory Dec 2015 36,000
Total 501,000
Expected Inventory Jan 2015 32,000
Total raw materials usage budget (in quantities) 469,000
4. Raw materials purchase budget (in pesos)

Scarborough Corporation
Raw materials purchase budget (in

Total RM usage
Raw Material
budget (in
quantities)
A 469,000
B 256,000
C 42,000

5. Direct labor budget (in pesos)

Scarborough Corporation
Direct labor budget (in pesos

Product Production budget Hours per unit

One 65,000 2
Two 41,000 3

6. Budgeted finished goods inventory at December 31, 2015 (in pesos)

Scarborough Corporation
Budgeted Finished Goods Inventor
December 31, 2015
Product One
Raw materials costs:
Expected Purchase Price
One (kilos)
A 4 8.00
B 2 5.00
C 0 3.00
Direct manufacturing labor costs,
Hours per unit Rate per hour
2 3.00
 rborough Corporation
venue Budget for 2015

Price Sales budget

70.00 4200000
100.00 4000000
8200000

rborough Corporation
n Budget (in units) for 2015

Jan-15 Production budget

20,000 65,000
8,000 41,000
106,000

rborough Corporation
als usage budget (in quantities)

B C

130,000 0

123,000 41,000

253,000 41,000
32,000 7,000
285,000 48,000
29,000 6,000
256,000 42,000
rborough Corporation
als purchase budget (in pesos)

Expected Purchase Total RM purchase

Price budget (in pesos)

8.00 3,752,000.00
5.00 1,280,000.00
3.00 126,000.00
5,158,000.00

rborough Corporation
ct labor budget (in pesos)

Total Hours Rate per hour Total

130,000 3.00 390,000.00
123,000 4.00 492,000.00
882,000.00

rborough Corporation
ted Finished Goods Inventory
December 31, 2015

32
10
0 42