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Budget Problems-Homework Help1
Budget Problems-Homework Help1
2. JLT Corporation expects to sell 150,000 units during the first quarter of 1998, with an
ending inventory for the quarter of 20,000 units. Variable manufacturing costs are
budgeted at P50 per unit, with 70% of total variable manufacturing costs requiring cash
payments during the quarter. Fixed manufacturing costs are budgeted at P120,000 per
quarter, 40% of which are expected to require cash payment during the quarter.
In the cash budget, payments for manufacturing costs during the quarter will total
a. P8,500,000 b. P5,950,000 c. P5,998,000 d. P5,298,000