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20-1A.xlsx

Name:
Instructor:
Accounting, Fourth Edition by Kimmel, Weygandt, and Kieso
Primer on Using Excel in Accounting by Rex A Schildhouse

Date:
Course:

P20-1A - Prepare budgeted income statement and supporting budgets.

Glendo 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 2013.
bags; Quarter 2
bags. Selling price is
1. Sales: Quarter 1
28,000
42,000
$60.00
per bag.
pounds of Gumm at a cost of
$4.00 per
2. Direct materials: Each bag of
4
Snare and
6
pound requires
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
0.25
hours (15 minutes) per bag at an hourly rate of
$14.00
4. Direct labor: Direct labor time is
per hour.
15%
of sales plus
$175,000
5. Selling and administrative expenses are expected to be
per quarter.
30%
of income from operations.
6. Income taxes are expected to be
Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be
of direct labor cost. (2) The direct materials budget for Tarr shows the cost of Tarr purchases to be
150%
$297,000
$439,500
in quarter 2.
in quarter 1 and
Instructions:
Prepare the budgeted income statement for the first 6 months and all required operating budgets by quarters. (Note:
Use variable and fixed in the selling and administrative expense budget.) Do not prepare the manufacturing
overhead budget or the direct materials budget for Tarr.

Title
Title
Title

GLENDO FARM SUPPLY COMPANY
Sales Budget
For the Six Months Ending June 30, 2012
Quarter
1
2
6 Months
Number
Number
Formula
Amount
Amount
Amount
Formula
Formula
Formula

Title
Title
Title
Title
Title

GLENDO FARM SUPPLY COMPANY
Production Budget
For the Six Months Ending June 30, 2012
Quarter
1
Amount
Amount
Formula
Amount
Formula

2
6 Months
Amount
Formula
Amount
Formula
Formula
Formula
Amount
Formula
Formula
Formula

Title
Title
Title
Title
Title
Title
Title
Title
Title

GLENDO FARM SUPPLY COMPANY
Direct Materials Budget - Gumm
For the Six Months Ending June 30, 2012
Quarter
1
Amount
Amount
Formula
Amount
Formula
Formula
Formula
Amount
Formula

2
6 Months
Amount
Amount
Amount
Amount
Formula
Formula
Amount
Amount
Formula
Formula
Formula
Formula
Formula
Formula
Amount
Amount
Formula
Formula

Units to be produced
Title
Title
Title
Title

GLENDO FARM SUPPLY COMPANY
Direct Labor Budget
For the Six Months Ending June 30, 2012
Quarter
1
Amount
Amount
Formula
Amount
Formula

2
6 Months
Amount
Amount
Amount
Amount
Formula
Formula
Amount
Amount
Formula
Formula

GLENDO FARM SUPPLY COMPANY
Selling and Administrative Expense Budget
For the Six Months Ending June 30, 2012
Quarter
1
2
6 Months
Budgeted sales in units
Amount
Amount
Formula
Title
Title
Total

Formula
Amount
Formula

Formula
Amount
Formula

Formula
Amount
Formula

GLENDO FARM SUPPLY COMPANY
Budgeted Income Statement
For the Six Months Ending June 30, 2012
6 Months
Title
Title
Title
Title
Title
Title
Title
Cost element
Direct materials
Title
Title
Title
Title
Title

Formula
Formula
Formula
Amount
Formula
Formula
Formula
Quantity
Number
Number
Number

Unit Cost
Amount
Amount
Amount

Total
Formula
Formula
Formula
Formula
Formula

qattachments_ea5aff63fe8a7874d112f7e0d96db9de56282f94.xlsx , Problem P20-1A , Page 1 of 1 Page(s), 04/09/2013 13:23:08

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