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MGR ACCT HELP PLEASE, Zelmer Farm Supply Company manufactures and sells a pesticid
Introduction: MGR ACCT HELP... PLEASE!
More Details: Zelmer 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 2012.Sales: Quarter 1, 28,000 bags; quarter 2, 42,000 bags. Selling price is $60 per bag.Direct materials: Each bag of Snare requires 4 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.50 per pound.Desired inventory levels:Type of Inventory January 1 April 1 July 1Snare (bags) 8,000 12,000 18,000Gumm (pounds) 9,000 10,000 13,000Tarr (pounds) 14,000 20,000 25,000Direct labor: Direct labor time is 15 minutes per bag at an hourly rate of $14 per hour.Selling and administrative expenses are expected to be 15% of sales plus $175,000 per quarter.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 $297,000 in quarter 1 and $439,500 in quarter 2.Complete the budgeted income statement for the first 6 months and all required supporting budgets by quarters. (Note: Use variable and fixed in the selling and administrative expense budget). (Round unit cost to 2 decimal places e.g. 25.75. Show time as a percent e.g. 45 minutes is .75. Enter all amounts as positive amounts and subtract where necessary.)ZELMER FARM SUPPLY COMPANYSales BudgetFor the Six Months Ending June 30, 2012QuarterSix12MonthsExpected unit salesUnit selling price × $× $× $Total sales $$$ZELMER FARM SUPPLY COMPANYProduction BudgetFor the Six Months Ending June 30, 2012QuarterSix12MonthsExpected unit salesAdd: Desired ending finished goods unitsTotal required unitsLess: Beginning finished goods unitsRequired production unitsZELMER FARM SUPPLY COMPANYDirect Materials Budget-GummFor the Six Months Ending June 30, 2012QuarterSix12MonthsUnits to be producedDirect materials per unit ××Total pounds needed for productionAdd: Desired ending direct materialsTotal materials requiredLess: Beginning direct materialsDirect material purchasesCost per pound × $× $Total cost of direct materials purchases $$$ZELMER FARM SUPPLY COMPANYDirect Labor BudgetFor the Six Months Ending June 30, 2012QuarterSix12MonthsUnits to be producedDirect labor time (hours) per unit ××Total required direct labor hoursDirect labor cost per hour × $× $Total direct labor cost $$$ZELMER FARM SUPPLY COMPANYSelling and Administrative Expense BudgetFor the Six Months Ending June 30, 2012QuarterSix12MonthsBudgeted sales in unitsVariable $ $ $FixedTotal $$$ZELMER FARM SUPPLY COMPANYBudgeted Income StatementFor the Six Months Ending June 30, 2012Sales $Cost of goods soldGross profitSelling and administrative expensesIncome from operationsIncome tax expenseNet income $