Reference no: EM131205226
Cook 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 2017.
1. Sales: quarter 1, 40,000 bags; quarter 2, 56,000 bags. Selling price is $60 per bag.
2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.5 per pound.
3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,000 15,000 18,000 Gumm (pounds) 9,000 10,000 13,000 Tarr (pounds) 14,000 20,000 25,000
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 $175,000 per quarter. 6. Interest expense is $100,000.
7. Income taxes are expected to be 30% of income before income taxes. Your assistant has prepared two budgets: (1) the manufacturing overhead budget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $297,000 in quarter 1 and $439,500 in quarter 2.
Prepare the budgeted multiple-step income statement for the first 6 months.
|
Analyse the cash flow statements for the last two years
: Analyse the Cash Flow Statements for the last 2 years and comment on the cash position of the company. Discuss the importance & interpretation of the findings
|
|
Determine two key ways in which richard branson is motivate
: Determine two key ways in which Richard Branson is likely to motivate employees in order to achieve his goals for the Virginia Group. Indicate whether or not his approach is likely to work in a different organizational setting.
|
|
What should be the gross profit recognized
: Windsor Construction Company uses the percentage-of-completion method of accounting, In 2014, Winsor began work on a contract it had received which provided for a contract price of $3,000,000. What should be the gross profit recognized in 2014?
|
|
What do you think of the free offers
: Based on these articles and other readings you may find, what do you think of the "free" offers used by online retailers or marketer - Do you think the "free" offers would be more effective than coupons?
|
|
Prepare the budgeted multiple-step income statement
: Cook 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 2017. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3..
|
|
What is the equilibrium is exigency restored
: All consumers meet at time 0 to trade. What is the equilibrium? Is exigency restored?
|
|
Monthly bank reconcilement
: On a May monthly bank reconcilement, an amount of $86.77 is required to be added with the beginning bank balance so that the general ledger bank balance will match. Should the bank account and tax & license expense account be debited or credited $86...
|
|
Difference controllable costs budget actual favorable
: The Mixing Department manager of Malone Company is able to control all overhead costs except rent, property taxes, and salaries. Budgeted monthly overhead costs for the Mixing Department, in alphabetical order, are: Prepare a responsibility report fo..
|
|
What are the effects of such tax exporting
: In many countries the capital owned by nonresidents is taxed. What are the effects of such tax exporting? Is it profitable to subsidize capital owned by nonresidents?
|