Humanities

. Answer: A

The amount of fixed costs in operating branches’ 10 warehouses is P400,000 (the fixed cost line intercepts the vertical axis).

Total operating costs P2,900,000

Less fixed costs 400,000

Total variable costs (10 warehouses) P2,500,000

Variable costs per branch: P2,500,000 10 P 250,000

. Answer: A

Cost of units sold (0.65 x P800,000) P520,000

Add Desired ending inventory 140,000

Total cost of goods available for sale 660,000

Deduct Beginning inventory 130,000

Budgeted purchases P530,000

. Answer: A

* Cost of goods sold P750,000 x 0.6 P450,000

* Add Ending Inventory P800,000 x 0.6 x 0.5 240,000

* Total available for sale P690,000

* Deduct Beginning inventory P450,000 x 0.5 225,000

* Budgeted purchases, February P465,000

. Answer: D

Cost of sales P120,000

Add Desired ending inventory 42,000

Total available for sale 162,000

Deduct Budgeted purchases 100,000

Beginning inventory P 62,000

. Answer: A

Total payments for purchases in June P140,000

Deduct payments applicable to purchase of:

June (P100,000 x 0.6) P60,000

May (P200,000 x 0.30) 60,000 120,000

Payments applicable to April purchase P 20,000

Credit purchase in April: P20,000 0.10 P200,000

. Answer: C

Budgeted sales, First Quarter 120,000 units

Add Required Ending Finished goods: 30% x 160,000 48,000 units

Total units required 168,000 units

Less Beginning Finished goods 36,000 units

Budgeted production in units 132,000 units

. Answer: C

Sales for three-month period:

July 400,000

August 400,000 x 1.05 420,000

September 420,000 x 1.05 441,000

Total 1,261,000

Inventory, September 30 (441,000 x 1.05 x 0.8)...