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ACC - Glendo Farm Supply Company




Question;Glendo Farm Supply Company manufactures and sells a pesticide called Snare. The following data areavailable for preparing budgets for Snare for the first 2 quarters of 2014.1. Sales: Quarter 1, 28,800 bags, quarter 2, 43,200 bags. Selling price is $61 per bag.Direct materials: Each bag of Snare requires 5 pounds of Gumm at a cost of $4 per pound and 8 pounds of2.Tarr at $1.50 per pound.3. Desired inventory levels:Type of InventorySnare (bags)Gumm (pounds)Tarr (pounds)January 1April 1July 18,20012,20018,3009,30010,30013,50014,40020,10025,5004. 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 $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 be150% 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 $426,000 in quarter 2.Don't show me this message again for the assignment(a)Your answer is partially correct. Try again.Prepare the sales budget.GLENDO FARM SUPPLY COMPANYSales BudgetFor the Six Months Ending June 30, 2014Quarter12Expected unit salesUnit selling price$Total sales$Prepare the production budget.GLENDO FARM SUPPLY COMPANYProduction BudgetFor the Six Months Ending June 30, 2014


Paper#39901 | Written in 18-Jul-2015

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