Quarter 1Selling price per bag28,000 bags$60Managerial Accounting, 6th Canadian Edition, by Weygandt, Kieso, Kimmel and Aly"Group Project Farm Supply Company" manufactures and sells a fertilizer called Snare.The following data are available for preparing budgets for Snare for the first two quarters of 2025.1. Sales:2. Direct materials: Each bag of Snare requiresQuarter 242,000bags4kilograms of Gumm at a cost of$4.00per kilogram and6kilograms of Tarr at$1.50per kilogram.3. Desired inventory levels:Type of InventoryJanuary 1April 1July 1Snare (bags)8,00012,00018,000Gumm (kilograms)9,00010,00013,000Tarr (kilograms)4. Direct labour: Direct labour time is155. The company expects selling and administrative expenses to be6. It expects income taxes to be30%of the income from operations.14,00020,00025,000minutes per bag at an hourly rate of15%of sales plus$14.00$175,000per quarter.Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to belabour cost. (2) The direct materials budget for Tarr shows the cost of Tarr purchases to be$439,500 in quarter 2.Instructions:Prepare the budgeted income statement for the first six months and all required operating budgets by quarters.(Note: Classify items as variable and fixed in the selling and administrative expenses budget.)Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.150%$297,000of the directin quarter 1 and

It is the process of undertaking plans to spend money. This plan enables the business in advance to…

"Group Project Farm Supply Company" manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of 2025. 1. Sales: Quarter 1 28,000 Selling price per bag bags $60 2. Direct materials: Each bag of Snare requires Quarter 2 42,000 bags kilograms of Gumm at a cost of $4.00 per kilogram and 6 kilograms of Tarr at $1.50 per kilogram. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1

"Group Project Farm Supply Company" manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of 2025. 1. Sales: Quarter 1 28,000 Selling price per bag bags $60 2. Direct materials: Each bag of Snare requires Quarter 2 42,000 bags kilograms of Gumm at a cost of $4.00 per kilogram and 6 kilograms of Tarr at $1.50 per kilogram. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Easy Farms Inc. makes tillers for small farms. Their sales budget is shown below: Sep sales, units 10,000 Oct sales, units 56,000 Nov sales, units 40,000 Management want enough tillers on hand to meet 10% of next month's sales. Each tiller requires 8 round blades. Management wants enough blades to meet 13% of next month's production needs. Each blade cost $4.50. What is the material budget for blades for September (in dollars)? Enter as a whole number, no commas and no dollar signs. Your Answer: Answer
Oriole 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 2020. 1. Sales: quarter 1, 28,400 bags; quarter 2, 44,000 bags. Selling price is $62 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,100 12,500 18,300 Gumm (pounds) 9,100 10,400 13,100 Tarr (pounds) 14,300 20,200 25,400 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 $180,000 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)…
7) Goodyear sells 41,000 car tires & 15,000 truck tires using rubber & steel. Prepare a DM purchasing budget given the following data: Car Tires Truck Tires Cost/pound BEG INV END INV Rubber 30 lbs/unit 60 lbs/unit $1.60 30,000 32,000 Steel 4 lbs/unit 7 lbs/unit $0.70 12,000 10,000
lens junction sells lenses for 45$ and each and is estimating sales of 15,000 units in january and 18000 units in february. each lens consist of 2 pounds of silicion costing $2.50 per pound, 3 ounces of solution costing $3 per ounce, and 30 minutes of direct labor at a rate of $18 per hour . prepare a sales budget, production budget, direct mateials budget for silicon
Fisher-Price manufactures two products, Bassinet and Swing, which use raw materials, pins and clips. One bassinet uses 4 units of pins and 3 units of clips. One swing uses 2 units of pins and 6 units of clips. One pin is expected to cost $7 and one clip is expected to cost $5. Sales and finished goods inventory budget for the year 2020 are as follows: Bassinets Swings Budgeted sales 5,000 units Budgeted sales 7.000 units Opening inventory 1,000 units Opening inventory 2,000 units Closing inventory 600 units Closing inventory 800 units Selling price $400 Selling price $300 Raw material inventory budget for the year 2020 are as follows: Pins Clips Opening inventory 2,400 units Opening inventory 3,300 units Closing inventory 500 units Closing inventory 600 units The warehouse and stores managers have suggested that a provision should be made for damages and deterioration of items held in store, as…
Need help finding the Direct Materials budget. I included a photo of what i have so far.
Oriole 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 2020. 1. Sales: quarter 1, 28,400 bags; quarter 2, 44,000 bags. Selling price is $62 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,100 12,500 18,300 Gumm (pounds) 9,100 10,400 13,100 Tarr (pounds) 14,300 20,200 25,400 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 $180,000 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)…
Sun Valley showed the following on its direct materials budget for May: Units to be produced 62,500 Total kilos needed for production 5,000 Total kilos of materials to be purchased 7,500 The materials cost P2.50 per kilo. How much is the cost of direct materials per unit? • Cost of Direct Materials per Unit = Materials Cost x Total kilos needed for production/ Units to be produced a. Php 0.20 Ob. Php 0.30 C. Php 8.33
Scholar Suppliers manufactures backpacks for students. The backpacks come in two sizes: Small, and Large. Scholar Suppliers anticipates the following sales volumes and prices for the coming period: Size Sales Volume Selling Price Small 3,000 backpacks $25 each Large 6,000 backpacks $75 each What is the budgeted level of revenue for the coming period?
1. Yas corporation is budgeting sales of 53,000 units of product Nous for October 2000. The manufacture of one unit of Nous requires 4 kilos of chemical Loire. During October 2021, Yas plans to reduce the inventory of Loire by 50,000 kilos and increase the finished goods inventory of Nous by 5,000 units. There is no Nous work in process inventory.How many kilos of Loire is Yas budgeting to purchase in October 2021?
Don't give answer in image format
The flexible budgeting for the Naurution company assumes that the first year of operation will serve either 20%, 40% and 60% of the entire 10,851 population of the Republic of Nauru and that the selling price per one meal is $22. Amelia and Kevin are expected to sell 5 meals per week during the 52 weeks per year. Additional details of the flexible budgeting show that the direct labor costs are $2 per unit, direct materials costs $4 per unit, variable overhead costs are $1 for 20%, $ 0.50 for 40% and $0.25 for 60% expected sales, fixed overhead costs are $1,745,984, and general, selling and administrative expenses are estimated to be $25,000. Income taxes are expected to be 21%. According to the completed flexible budgeting, net income for the 40% levels of sales is: a) 5,287,309 b) 9,567,354 c) 4,934,345 d) 7,435,345