Master Budget for Manufacturera América SAC

Master Budget for Manufacturera América SAC

• Sales Price: S/.35.00 per unit
• Sales by Territory (units): Data provided for November and December, across three territories, showing projected sales volumes for each.
• Inventory Requirements: The company aims to have specific finished goods inventory levels on November 1st, November 30th, and December 31st. These levels are 2000, 3000, and 3500 units respectively.
• Direct Materials Inventory: The company will maintain an inventory of direct materials. Final inventory levels will represent 30% of next month’s production needs. Opening inventory will be 20% of the projected production need.January 2022 requires a projected production of 4,000 units.
• Direct Material Costs: The price for direct materials is S/.12.00 per unit until the end of November, rising to S/.12.50 per unit in December.
• Direct Labor: Three hours of direct labor are required per unit in November, reduced to two hours in December. The hourly rate is S/.2.50 in November, and S/.3.00 in December
• Manufacturing Overhead: Detailed variable and fixed manufacturing overhead costs are listed (e.g., materials, labor, supervision, maintenance). The variable portion is calculated based on direct labor hours.
• First-In, First-Out (FIFO) Method: The company uses FIFO for inventory valuation of direct materials. Beginning direct material inventory on November 1st consists of 800 units at S/.12.00 per unit.
• Sales Expenses: Comprises variable expenses (commissions, advertising, and bad debts) and fixed expenses related to the sales function (salaries). Commissions equal 2% of gross sales; advertising equals 1% of gross sales.
• Administrative Expenses: Consist of the fixed expenses related to the administrative function of the company (office salaries, executive salaries, taxes, insurance, and various administrative expenses)
• Specific Sales Data: November credit sales of S/.21,000; December credit sales of S/.26,600.
• Budget Preparation Requirements: The document requests preparation of a master budget including specific sub-budgets.

This quiz focuses on the master budgeting process for Manufacturera América SAC, detailing sales projections, inventory requirements, and cost analysis. Participants will assess production needs, labor costs, and material pricing to create an effective budget plan for the company.