budgets for Snare for the first 2 quarters of 2022. 1 2 3 Type of Inventory January 1 Snare (bags) Gumm (pounds) Tarr (pounds) 4. 51 6. ctures and sells a pesticide called snar 7 Sales: quarter 1, 28,200 bags; quarter 2. 42.400 bags. Selling price is $63 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 $1.75 per pound. Desired inventory levels: April 1 12,200 8,200 9,100 10,400 14,500 20,400 July 1 18,100 followin 13,300 25,200 Dic for preparing Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $180,000 per quarter, Interest expense is $100,000. Income taxes are expected to be 20% of income before income taxes

budgets for Snare for the first 2 quarters of 2022. 1 2 3 Type of Inventory January 1 Snare (bags) Gumm (pounds) Tarr (pounds) 4. 51 6. ctures and sells a pesticide called snar 7 Sales: quarter 1, 28,200 bags; quarter 2. 42.400 bags. Selling price is $63 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 $1.75 per pound. Desired inventory levels: April 1 12,200 8,200 9,100 10,400 14,500 20,400 July 1 18,100 followin 13,300 25,200 Dic for preparing Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $180,000 per quarter, Interest expense is $100,000. Income taxes are expected to be 20% of income before income taxes

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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[The following information applies to the questions displayed below.]Shadee Corp. expects to sell 630 sun visors in May and 410 in June.Each visor sells for $24. Shadee’s beginning and ending finishedgoods inventories for May are 75 and 45 units, respectively. Endingfinished goods inventory for June will be 60 units.!Each visor requires a total of $4.00 in direct materials that includes an adjustableclosure that the company purchases from a supplier at a cost of $1.50 each. Shadeewants to have 31 closures on hand on May 1, 23 closures on May 31, and 20 closureson June 30. Additionally, Shadee’s fixed manufacturing overhead is $700 per month,and variable manufacturing overhead is $1.75 per unit produced.Required:1. Determine Shadee's budgeted cost of closures purchased for May and June.2. Determine Shadee's budget manufacturing overhead for May and June. Required 1 Required 2 
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