Glendo farm supply company manufactures and sells a

Assignment Help Accounting Basics

Reference no: EM13580021

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, 29900 bags; quarter 2, 43,500 bags. Selling price is $63 per bag. 2. Direct materials: Each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 7 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,400 12,200 18,200 Gumm (pounds) 9,500 10,400 13,300 Tarr (pounds) 14,100 20,100 25,100 4. Direct labor: Direct labor time is 15 minutes per bag at an hourly rate of $14 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $177,000 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 $425,000 in quarter 2.

Reference no: EM13580021

Questions Cloud

When you arrive in your new chevrolet there are already 7 : there are 10 adjacent parking places in the parking lot. when you arrive in your new chevrolet there are already 7

Prepare a monthly manufacturing overhead flexible budget : cook company estimates that 344900direct labor hours will be worked during the coming year 2014 in the packaging

Explain the concepts of reliability and validity why are : please provide a 250-300 word explanation for the below discussion questions and please include apa style in-text

The capital balances prior to the liquidation of the xyz : the capital balances prior to the liquidation of the xyz partnership were as followsx y and z share profits and losses

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

Company is currently paying a fixed salary of 250000 to the : company sells one product for a price of 100.00 per unit. the variable production cost is 40.00 per unit.total fixed

Use the multiplication rule of counting to determine the : a sales representative must visit six cities. there are direct air connections between each of the cities. use the

What should be the minimum transfer price accepted by : rede inc. has two divisions. division a makes and sells student desks. division b manufactures and sells reading lamps.

Assuming that all direct materials are placed in process at : department g had 3281 units one-third completed at the beginning of the period 12794 units were completed during the

User Account

All Pages