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)

Sales Budget

Product Name ONE TWO

Units to be sold 60000 40000
*Price per unit 70 100
Sales Revenue 4200000 4000000

Production Budget

Units to be Sold 60000 40000

Add: Desired Finished Goods, end. 25000 9000
Total Needs 85000 49000
Less: Finished Inventory, beg. 20000 8000
Units to be Produced 65000 41000

Raw Materials Usage Budget

Units to be Produced (ONE) 65000

*Direct Materials per unit
Material A 4 260000
Material B 2 130000
Material C 0 0 390000
Material A
Units to be Produced (TWO) 41000 Material B
*Direct Materials per unit Material C
Material A 5 205000
Material B 3 123000
Material C 1 41000 369000
Production Needs 759000
Add: Desired Ending Raw Materials Inventory
Material A 36000
Material B 32000
Material C 7000 75000
Total Needs 834000
Less: Beginning Raw Materials Inventory
Material A 32000
Material B 29000
Material C 6000 67000
Raw Materials to be Purchased 767000
One Quantities Two Quantities TOTAL QUANTITIES Desired Ending RM TOTAL NEEDS
4 260000 5 205000 465000 36000 501000
2 130000 3 123000 253000 32000 285000
0 0 1 41000 41000 7000 48000
Beginning RM RM to be Purchased
32000 469000
29000 256000
6000 42000
767000