Am I supposed to show the budgets for the 2 materials?

Prepare a complete Master budget for 2020. All supporting budgets should be included. (Sales, Production, Direct Materials Purchases, Direct Labor, Factory Overhead, Selling and Administrative Expenses, Cost per Unit, and Budgeted Income Statement.) 30 points. Use the following information: Sales

Farmchem is an agricultural chemical company. The company has two products: Fertilizer and Weedkiller. 2019 sales were 50,000 bags of Fertilizer and 60,000 bags of Weedkiller. The sales manager estimates that unit sales of Fertilizer will increase 5% in 2020 and sales of Weedkiller will decrease 2%. The current price per bag: $60 for Fertilizer and $55 for Weedkiller. For 2020, the Vice President of Sales has decided that to cover inflation, the sales price per-bag of Fertilizer will increase 1% and the sales price per-bag sales of Weedkiller will increase 5%. Production

The Production Manager estimates there will be 5,000 bags each of Fertilizer and Weedkiller in inventory at the end of 2019. The Sales Manager wants 5% of projected 2020 sales on hand at the end of 2020. Materials

Each bag of Fertilizer uses 5 pounds of Chemical A and 5 pounds of Chemical B. Each bag of Weedkiller uses 10 pounds of Chemical B. There will be no raw materials inventory on hand at the end of 2019 and no required inventory on hand at the end of 2020. (Farmchem buys all its raw materials on a Just-in-Time basis so needs no inventory on hand.) Chemical A costs $4.00 per pound in 2019. Its price is expected to increase 5% in 2020 due to inflation. Chemical B costs $3.00 per pound. Its price is expected to stay the same in 2020. Labor

Farmchem currently has a compensation cost of $10 per hour. Due to increased medical insurance expense, their compensation cost per hour is expected to rise to $10.05 in 2020. Labor quantity: hour per unit of Fertilizer; hour per unit of Weedkiller. Manufacturing Overhead

Farmchem has the following manufacturing overhead costs: Indirect Labor $0.50 per bag Indirect Materials $0.10 per bag Factory Fixed Costs $45,951 Farmchem allocates overhead equally to each bag produced. Selling and Administrative Expenses Sales Commissions $1 per bag Freight Expense $0.50 per bag Selling Fixed Expenses $375,000 Administrative Fixed Expenses $300,000 Other information The company has a $500,000 mortgage. The annual interest rate is 10%. This will generate Interest Expense. Income tax rate for Farmchem is 30%

Sales Budget For the year ending Dec. 31, 2020 edkiller 58,800 $57.75 Fertilizer |We Total Expected sales units Unit selling price Total Sales 52,500 $60.60 111,300 $3,181,500 $3,395,700 $6,577,200 Farmchem Production Budget For the Year Ending December 31, 20xx Fertilizer WeedkillerTotal 58,800 Expected unit sales Add: Desired ending finished 52,500 111,300 2,940 61,740 5,000 56,740 goods units Total required units Less: Beginning finished goods units Required production units 2,625 55,125 5,000 50,125 106,865 Farmchem Direct Materials Budget For the Year Ending December 31, 20xx rtilizer Weedkiller 56,740 10 Total 50,125 Units to be produced DM units per unit produced DM units per unit produced DM units requird for production Add: Desired ending DM invento Total materials required Less: Beginning DM invento DM Units 106,865 501,250 567,400 1,068,650 501,250 567,400 1,068,650 to be purchased Cost per unit of DM (Chemical A) Cost per unit of DM (Chemical B Cost of DM to be purchased 1,068,650 4.20 3.00 $3,609,000 $1,702,200 $5,311,200 501,250 567,400 $ 4.20 $ $ 3.00 S 3.00 $