Gilmore Corp. is preparing its operations budget for December 2021. The data from the previous year is presented as foll

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Gilmore Corp. is preparing its operations budget for December 2021. The data from the previous year is presented as follows: Gilmore Corporation Income Statement For the year ended December 2020
Sales (150,000 units) ------------------------> 3,750,000.00
Cost of Goods Sold --------------------------> 1,912,500.00
Gross Profit ------------------------------------> 1,837,500.00
Operating expenses (including rent and depreciation of
100,000 and 150,000) ----------------------> 550,000.00
Net Income ------------------------------------> 1,287,500.00
Gilmore Corp is looking to adjust the budget for the coming year as follows:
1. Because of the on-going pandemic, Gilmore is forecasting a 10% decrease in the sales every quarter starting the first quarter.
2. Sales discounts and allowances are estimated to be 1.5% every quarter.
3. Gilmore is planning to maintain an ending inventory of 7,500 for the first two quarters, and 6,500 to the other two quarters. The planned ending inventory for the first two quarters is 1,000 less than the ending inventory from the previous year.
4. Gilmore's outputs contain 3 units of raw materials costing P5.50, and take about 2.5 labor hours to finish. Each labor hour costs P4.75. Gilmore maintains an ending raw materials inventory at 3% of budgeted units to be produced.
5. Variable overhead costs are currently at 3.75 and is expected to increase by 10% each quarter.
6. Fixed overhead costs remain the same. 7. Selling and administrative expenses amounts to 175,000.
Required:
1. Prepare and present the whole operations budget of Gilmore Corp.
2. Prepare and present the budgeted income statement per quarter of Gilmore Corp. for 2021.