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3.4 Sheffield Farm Supply Company manufactures and sells a fertilizer called Share. The following data we wait for your for Snare for the first two
3.4 Sheffield Farm Supply Company manufactures and sells a fertilizer called Share. The following data we wait for your for Snare for the first two quarters of 2022. 1. Sales: Quarter 1. 30.000 bus quarter 2.44,000 aps. Selling price is $5 per but 2. Direct materiale:Each bag of Snare requires thg of Gumma 54.00 per kilogram and olg of To 51.50 per kilogram 3 Desired inventory levels July 1 Type of inventory Share bags January 1 April 1 7000 13,000 10.000 9.000 17 000 Gummi 12.000 Tarr 15.000 21.000 26,000 4. Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $12.00 per hour 5. The company expects selling and administrative expenses to be 15% of sales plus 5177,000 per quarter 6. It expects income taxes to be 30% of income from operations 4. Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $12.00 per hour. 5. The company expects selling and administrative expenses to be 15% of sales plus $177,000 per quarter. 6. It expects Income taxes 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 labour cost. (2) The direct materials budget for Tarr shows the cost of Tarr purchases to be $296.000 in quarter 1 and $435.000 in quarter 2 Prepare the following operating budgets by quarters. (Note: Classify items as variable and fixed in the selling and administrative expenses budget.) Do not prepare the manufacturing overhead budget or the direct materials budget for Tart. -120 Prepare the direct materials but by water SHEFFIELD FARM SUPPLY COMPANY Direct Materials Budget-Gumm For the Six Month Ending June 30, 2022 Quarter Se Month
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