EXERCISE

7.4
4)The company Dulcera Linares SA, produces several product lines, among which is that of filled chocolates. Because the company accountant is on vacation
and the only person who knows how to develop budgets requested the management accounting consultant to develop:
It asks:
a) Sales Budget
b)Production Budget
The data shown below are relevant:
FILLED CHOCOLATES
MATERIALS (Raw Material)
Chocolate
filling
Labor

5 grs
10 grs
5 min

The indirect manufacturing expense applied hours based direct labor

The sales department estimates, based on market analysis and opinions of the sellers, sales of chocolates filled for the next year will be 1000000 of chocolates.
Also, do know that the price is expected to sell the box is $ 50 and each box contains 25 chocolates.
Budgeted Sales =
Price box =
$ 50,00

1000000 uni

Chocolates per box =

Price per chocolate =

25 uni
$ 2,00

The company's balance sheet at December 31, 2001, shows an inventory of 250000 300000 chocolates and chocolates are desired ending inventory to 2002

The company's balance sheet at December 31, 2001, shows an inventory of 250000 300000 chocolates and chocolates are desired ending inventory to 2002
inventory
Ending inventory 2002 =

250000uni
300000uni

EXERCISE SOLUTION 7.4

SALES BUDGET
Dulcera Linares S.A
projected Sales
* Price
SALES BUDGET

1000000 uni
$ 2,00
$ 2.000.000

REQUIRED PRODUCTION BUDGET

Dulcera Linares S.A
projected Sales
(+) Inv. Final of prod. Fin.
(-) Inv. Initial of prod. Fin.
REQUIRED PRODUCTION

1000000 uni
300000uni
-250000uni
1050000 uni