Culver Company manufactures and sells a pesticide called Snare. The following data are available for preparing...
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Culver 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, 29,500 bags; quarter 2, 43,900 bags. Seling price is $63 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: Type of Inventory July 1 18,100 January 1 April 1 Snare (bags) 8,200 12,300 Gumm (pounds) 9,300 10,100 13,300 Tarr (pounds) 14,300 20,300 25,200 4. Direct labor: direct labor time is 1S minutes per bag at an hourly rate of $14 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) 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 $300,000 in quarter 1 and $423,500 in quarter 2. Prepare the sales budget. CULVER COMPANY Sales Budget Quarter Six 2. Months Expected unit sales Unit selling price Total sales %24 %24 Prepare the production budget. CULVER COMPANY Production Budget Quarter Six 1 2 Months Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.) CULVER COMPANY Direct Materials Budget-Gumm Quarter Six Months 2 Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.) CULVER COMPANY Direct Labor Budget Quarter Six Months 1 2 Prepare the selling and administrative expense budget. CULVER COMPANY Selling and Administrative Expense Budget Quarter Six 2 Months Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answers to o decimal places, e.g. 1,25s.) CULVER COMPANY Budgeted Income Statement Culver 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, 29,500 bags; quarter 2, 43,900 bags. Seling price is $63 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: Type of Inventory July 1 18,100 January 1 April 1 Snare (bags) 8,200 12,300 Gumm (pounds) 9,300 10,100 13,300 Tarr (pounds) 14,300 20,300 25,200 4. Direct labor: direct labor time is 1S minutes per bag at an hourly rate of $14 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) 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 $300,000 in quarter 1 and $423,500 in quarter 2. Prepare the sales budget. CULVER COMPANY Sales Budget Quarter Six 2. Months Expected unit sales Unit selling price Total sales %24 %24 Prepare the production budget. CULVER COMPANY Production Budget Quarter Six 1 2 Months Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.) CULVER COMPANY Direct Materials Budget-Gumm Quarter Six Months 2 Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.) CULVER COMPANY Direct Labor Budget Quarter Six Months 1 2 Prepare the selling and administrative expense budget. CULVER COMPANY Selling and Administrative Expense Budget Quarter Six 2 Months Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answers to o decimal places, e.g. 1,25s.) CULVER COMPANY Budgeted Income Statement
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Culver Company Sales Budget Six Months Note Budgeted sales Units 7340000 A Sell price 6300 B Budgete... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-1119392132
3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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