3a

Current Attempt in Progress Vaughn Farm Supply Company manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of 2022. 1. Sales: Quarter 1, 27.000 bags quarter 2, 44,000 bags. Selling price is $54 per bag 2. Direct materials: Each bag of Snare requires 4 kg of Gummat $4.00 per kilogram and 6 kg of Tarrat $1.50 per kilogram 3. Desired inventory levels Type of Inventory January 1 April 1 July 1 Snare (bags) 9,000 12.000 16,000 Gumm (kg) 8,000 10,000 14,000 Tarr (kg) 14,000 19,000 27,000 4. Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $16.00 per hour. 5. The company expects selling and administrative expenses to be 15% of sales plus $176.000 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 $299,000 in quarter 1 and 5439,000 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 Tarr. Viewing Question 3 Account Prepare the sales budget by quarters VAUGHN FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2022 Question 4 Account M Quarter Question 5 MO 1 2 Six Months Question 6 | vi tiet H | Expected sales in units Question 7 de Cho $ Unit selling price Question 8 Multicho Total sales $ Question 9 Multiple Choice Question 10 PI