Kimmel, Accounting: Tools for Business Decision Making, Se Assignment k ORION 21

Question

Kimmel, Accounting: Tools for Business Decision Making, Se Assignment k ORION 21-1A Glendo Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Sna 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 8 pounds of Tarr at $1.50 per pound. Snare (bags) Gumm (pounds) 8,300 12,400 18,500 9,400 10,200 13,200 14,500 20,400 25,100 Tarr (pounds) 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 per hour. s. 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 the cost of Tarr purchases to be $299,000 in quarter 1 and $426,000 in quarter 2. labor cost. (2) The direct mat Prepare the sales budget. GLENDO FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2014 Six nths Quarter 2 Expected unit sales

Explanation / Answer

GLENDO FARM SUPPLY COMPANY
Sales Budget
For the Six Months Ending June 30, 2014

GLENDO FARM SUPPLY COMPANY
Production budget
For the Six Months Ending June 30, 2014

GLENDO FARM SUPPLY COMPANY
Direct Materials Budget--Gumm
For the Six Months Ending June 30, 2014

GLENDO FARM SUPPLY COMPANY
Production budget
For the Six Months Ending June 30, 2014

Quarter 1 Quarter 2 Six Months Expected unit sales 29,800 42,700 72,500 Unit selling price $63 $63 $63 Total sales $1,877,400 2,690,100 4,567,500

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