p9-1b - Name Date Instructor Course Managerial Accounting...

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FileName: 49302e573da274878a6416f7849bbfac35f97b7e.xls, Tab: Problem P9-1B, Page 1 of 2, 12/28/2011, 19:02:12 Name: Date: Instructor: Course: 1. Sales: Quarter 1 28,000 Bags Quarter 2 40,000 Bags Selling price per bag $60 2. Direct materials: Each bag of Snare requires 4 pounds of Gumm at a cost of $3.00 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) 8,000 12,000 18,000 Gumm (pounds) 9,000 10,000 13,000 Tarr (pounds) 14,000 20,000 25,000 4. Direct labor: Direct labor time is 15 minutes per bag at an hourly rate of $14.00 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $175,000 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 labor costs. (2) The direct materials budget for Tarr which shows the cost of Tarr to be $297,000 in quarter 1 and $421,500 in quarter 2. Instructions: WAHLEN FARM SUPPLY COMPANY Title For the Six Months Ending June 30, 2006 Quarter Six Months 1 2 Expected unit sales Amount Amount Formula Title Amount Amount Amount Title Formula Formula Formula WAHLEN FARM SUPPLY COMPANY Title For the Six Months Ending June 30, 2006 Quarter Six Months 1 2 Expected unit sales
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p9-1b - Name Date Instructor Course Managerial Accounting...

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