Glendo farm supply company manufactures and sells a

Assignment Help Accounting Basics

Reference no: EM13579614

Glendo Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2014.

1.		Sales: Quarter 1, 29,500 bags; quarter 2, 43,600 bags. Selling price is $61 per bag.
2.		Direct materials: Each bag of Snare requires 5 pounds of Gumm at a cost of $4 per pound and 8 pounds of Tarr at $1.50 per pound.
3.		Desired inventory levels:

Type of Inventory	January 1	April 1	July 1
Snare (bags)	8,300	12,300	18,100
Gumm (pounds)	9,400	10,400	13,400
Tarr (pounds)	14,400	20,500	25,300

4.		Direct labor: Direct labor time is 15 minutes per bag at an hourly rate of $16 per hour.
5.		Selling and administrative expenses are expected to be 15% of sales plus $179,000 per quarter.
6.		Income taxes are expected to be 30% of income from operations.

Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be 150% of direct labor cost. (2) The direct materials budget for Tarr shows the cost of Tarr purchases to be $302,000 in quarter 1 and $424,000 in quarter 2.

Prepare the sales budget and the production budget

Reference no: EM13579614

Questions Cloud

Pierres hair salon is considering opening a new location in : pierres hair salon is considering opening a new location in french lick california. the cost of building a new salon is

What is the u201cbalanced scorecardu201d and what is its : what is the u201cbalanced scorecardu201d and what is its relationship to performance measures? why is it important for

Assume the population is normally distributed with a : the average age of vehicles registered in the united states is 96 months. assume the population is normally

Fill in journal entries to summarize the following : fill in journal entries to summarize the following transactions as they affect the accounting equation.then prepare the

Glendo farm supply company manufactures and sells a : glendo farm supply company manufactures and sells a pesticide called snare. the following data are available for

Develop the equation of the simple regression line to : question a corporation owns several companies. the strategic planner for the corporation believes dollars spent on

A company has 2000 shares of 1 par value common stock and : a company has 2000 shares of 1 par value common stock and 200 shares of 5 110 par noncumulative preferred stock

Using the t test for the correlation coefficient is there : q1. determine the value of the coefficient of correlation for the following datax15829687110436y349510301322550q2. a

Assuming a perpetual inventory system and the last-in : beginning inventory purchases and sales for product - weld tm are as follows sep. 1beginning inventory24 units15sep.

User Account

All Pages