Question
Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2
Cook 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 2020.
1.Sales: quarter 1,29,800bags; quarter 2,42,400bags. Selling price is $62per bag.2.Direct materials: each bag of Snare requires5pounds of Gumm at a cost of $3.80per pound and6pounds of Tarr at $1.50per pound.3.Desired inventory levels:
Type of Inventory
January 1
April 1
July 1
Snare (bags)8,10012,10018,100Gumm (pounds)9,50010,30013,100Tarr (pounds)14,10020,10025,200
4.Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16per hour.5.Selling and administrative expenses are expected to be 15% of sales plus $179,000per quarter.6.Interest expense is $100,000.7.Income taxes are expected to be 30% of income before income taxes.
Your assistant has prepared two budgets: (1) the manufacturing overhead budget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $303,000in quarter 1 and $422,500in quarter 2.
(Note:Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)
Your answer is partially correct.Try again.
Prepare the sales budget.
COOK FARM SUPPLY COMPANY
Sales Budget
For the Quarter Ending June 30, 2020
June 30, 2020
For the Six Months Ending June 30, 2020
Quarter
Six
Months
1
2
Direct Labor
Direct Materials
Expected Unit Sales
Production Units
Total Sales
Unit Selling Price
Direct Labor
Direct Materials
Expected Unit Sales
Production Units
Total Sales
Unit Selling Price
$
$
$
Direct Labor
Direct Materials
Expected Unit Sales
Production Units
Total Sales
Unit Selling Price
$
$
$
Prepare the production budget.
COOK FARM SUPPLY COMPANY
Production Budget
For the Quarter Ending June 30, 2020
For the Six Months Ending June 30, 2020
June 30, 2020
Quarter
Six
Months
1
2
Total Direct Labor Cost
Direct Materials per Unit
Required Production Units
Total Materials Required
Total Required Units
Beginning Direct Materials
Direct Labor Time per Unit
Beginning Finished Goods Units
Total Required Direct Labor Hours
Total Pounds Needed for Production
Cost per Pound
Desired Ending Direct Materials
Desired Ending Finished Goods Units
Direct Materials Purchases
Expected Unit Sales
Direct Labor Cost per Hour
Total Cost of Direct Materials Purchases
Add
Less
:
Desired Ending Finished Goods Units
Total Pounds Needed for Production
Beginning Direct Materials
Required Production Units
Total Required Direct Labor Hours
Direct Labor Time per Unit
Beginning Finished Goods Units
Total Materials Required
Total Required Units
Expected Unit Sales
Total Cost of Direct Materials Purchases
Cost per Pound
Total Direct Labor Cost
Desired Ending Direct Materials
Direct Materials per Unit
Direct Labor Cost per Hour
Direct Materials Purchases
Desired Ending Finished Goods Units
Cost per Pound
Direct Labor Cost per Hour
Required Production Units
Total Materials Required
Total Required Units
Beginning Direct Materials
Total Cost of Direct Materials Purchases
Desired Ending Direct Materials
Total Pounds Needed for Production
Total Direct Labor Cost
Total Required Direct Labor Hours
Beginning Finished Goods Units
Direct Labor Time per Unit
Direct Materials per Unit
Direct Materials Purchases
Expected Unit Sales
Add
Less
:
Desired Ending Finished Goods Units
Required Production Units
Beginning Finished Goods Units
Total Required Units
Direct Materials per Unit
Direct Labor Cost per Hour
Total Direct Labor Cost
Cost per Pound
Total Materials Required
Desired Ending Direct Materials
Direct Labor Time per Unit
Direct Materials Purchases
Expected Unit Sales
Total Cost of Direct Materials Purchases
Total Pounds Needed for Production
Beginning Direct Materials
Total Required Direct Labor Hours
Total Cost of Direct Materials Purchases
Direct Materials Purchases
Expected Unit Sales
Direct Labor Cost per Hour
Total Required Direct Labor Hours
Required Production Units
Total Direct Labor Cost
Total Materials Required
Total Pounds Needed for Production
Total Required Units
Beginning Direct Materials
Direct Labor Time per Unit
Beginning Finished Goods Units
Cost per Pound
Desired Ending Direct Materials
Desired Ending Finished Goods Units
Direct Materials per Unit
LINK TO TEXT
LINK TO VIDEO
Your answer is partially correct.Try again.
Prepare the direct materials budget.(Round Cost per pound answers to 2 decimal places, e.g. 52.70.)
COOK FARM SUPPLY COMPANY
Direct Materials BudgetGumm
June 30, 2020
For the Quarter Ending June 30, 2020
For the Six Months Ending June 30, 2020
Quarter
Six
Months
1
2
Total Pounds Needed for Production
Total Cost of Direct Materials Purchases
Direct Labor Cost per Hour
Total Required Direct Labor Hours
Units to be Produced
Total Required Units
Direct Labor Time (Hours) per Unit
Beginning Direct Materials (Pounds)
Cost per Pound
Desired Ending Finished Goods Units
Direct Materials per Unit
Beginning Finished Goods Units
Desired Ending Direct Materials (Pounds)
Direct Materials Purchases
Expected Unit Sales
Total Direct Labor Cost
Total Materials Required
Units to be Produced
Total Required Direct Labor Hours
Total Cost of Direct Materials Purchases
Expected Unit Sales
Direct Materials per Unit
Desired Ending Finished Goods Units
Total Materials Required
Total Pounds Needed for Production
Total Direct Labor Cost
Total Required Units
Beginning Direct Materials (Pounds)
Beginning Finished Goods Units
Direct Materials Purchases
Cost per Pound
Direct Labor Cost per Hour
Desired Ending Direct Materials (Pounds)
Direct Labor Time (Hours) per Unit
Desired Ending Direct Materials (Pounds)
Total Cost of Direct Materials Purchases
Direct Materials per Unit
Total Direct Labor Cost
Total Required Direct Labor Hours
Cost per Pound
Total Materials Required
Direct Labor Cost per Hour
Total Pounds Needed for Production
Desired Ending Finished Goods Units
Direct Labor Time (Hours) per Unit
Total Required Units
Units to be Produced
Beginning Direct Materials (Pounds)
Direct Materials Purchases
Expected Unit Sales
Beginning Finished Goods Units
Add
Less
:
Cost per Pound
Total Cost of Direct Materials Purchases
Desired Ending Direct Materials (Pounds)
Total Required Units
Desired Ending Finished Goods Units
Total Direct Labor Cost
Units to be Produced
Direct Labor Cost per Hour
Expected Unit Sales
Beginning Finished Goods Units
Total Required Direct Labor Hours
Direct Labor Time (Hours) per Unit
Total Pounds Needed for Production
Direct Materials Purchases
Total Materials Required
Beginning Direct Materials (Pounds)
Direct Materials per Unit
Beginning Finished Goods Units
Desired Ending Finished Goods Units
Direct Materials Purchases
Total Direct Labor Cost
Units to be Produced
Direct Labor Cost per Hour
Total Materials Required
Beginning Direct Materials (Pounds)
Cost per Pound
Desired Ending Direct Materials (Pounds)
Total Required Units
Direct Labor Time (Hours) per Unit
Direct Materials per Unit
Expected Unit Sales
Total Cost of Direct Materials Purchases
Total Pounds Needed for Production
Total Required Direct Labor Hours
Add
Less
:
Direct Labor Time (Hours) per Unit
Total Materials Required
Total Pounds Needed for Production
Total Cost of Direct Materials Purchases
Total Required Direct Labor Hours
Total Required Units
Total Direct Labor Cost
Direct Materials per Unit
Desired Ending Finished Goods Units
Beginning Direct Materials (Pounds)
Direct Labor Cost per Hour
Units to be Produced
Beginning Finished Goods Units
Cost per Pound
Desired Ending Direct Materials (Pounds)
Direct Materials Purchases
Expected Unit Sales
Desired Ending Finished Goods Units
Direct Materials Purchases
Beginning Direct Materials (Pounds)
Total Required Direct Labor Hours
Direct Materials per Unit
Expected Unit Sales
Direct Labor Time (Hours) per Unit
Beginning Finished Goods Units
Direct Labor Cost per Hour
Cost per Pound
Total Cost of Direct Materials Purchases
Total Pounds Needed for Production
Desired Ending Direct Materials (Pounds)
Total Direct Labor Cost
Total Materials Required
Total Required Units
Units to be Produced
Cost per Pound
Desired Ending Finished Goods Units
Expected Unit Sales
Total Cost of Direct Materials Purchases
Beginning Direct Materials (Pounds)
Direct Materials per Unit
Total Pounds Needed for Production
Direct Materials Purchases
Total Direct Labor Cost
Total Materials Required
Total Required Direct Labor Hours
Beginning Finished Goods Units
Total Required Units
Units to be Produced
Desired Ending Direct Materials (Pounds)
Direct Labor Cost per Hour
Direct Labor Time (Hours) per Unit
$
$
Direct Materials Purchases
Direct Materials per Unit
Desired Ending Finished Goods Units
Expected Unit Sales
Direct Labor Cost per Hour
Direct Labor Time (Hours) per Unit
Total Cost of Direct Materials Purchases
Beginning Finished Goods Units
Beginning Direct Materials (Pounds)
Total Direct Labor Cost
Total Materials Required
Total Pounds Needed for Production
Cost per Pound
Total Required Direct Labor Hours
Total Required Units
Desired Ending Direct Materials (Pounds)
Units to be Produced
$
$
$
Prepare the direct labor budget.(Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.)
COOK FARM SUPPLY COMPANY
Direct Labor Budget
June 30, 2020
For the Quarter Ending June 30, 2020
For the Six Months Ending June 30, 2020
Quarter
Six
Months
1
2
Direct Materials per Unit
Total Required Direct Labor Hours
Beginning Direct Materials (Pounds)
Total Required Units
Total Materials Required
Total Pounds Needed for Production
Direct Labor Cost per Hour
Total Cost of Direct Materials Purchases
Units to be Produced
Beginning Finished Goods Units
Cost per Pound
Desired Ending Direct Materials (Pounds)
Desired Ending Finished Goods Units
Total Direct Labor Cost
Direct Labor Time (Hours) per Unit
Direct Materials Purchases
Expected Unit Sales
Direct Labor Cost per Hour
Direct Materials Purchases
Total Direct Labor Cost
Expected Unit Sales
Total Materials Required
Total Cost of Direct Materials Purchases
Beginning Direct Materials (Pounds)
Direct Labor Time (Hours) per Unit
Total Required Units
Desired Ending Direct Materials (Pounds)
Total Required Direct Labor Hours
Beginning Finished Goods Units
Cost per Pound
Desired Ending Finished Goods Units
Direct Materials per Unit
Total Pounds Needed for Production
Units to be Produced
Cost per Pound
Desired Ending Direct Materials (Pounds)
Total Direct Labor Cost
Direct Materials Purchases
Total Materials Required
Total Pounds Needed for Production
Beginning Finished Goods Units
Desired Ending Finished Goods Units
Beginning Direct Materials (Pounds)
Direct Materials per Unit
Total Required Direct Labor Hours
Total Required Units
Direct Labor Time (Hours) per Unit
Units to be Produced
Direct Labor Cost per Hour
Expected Unit Sales
Total Cost of Direct Materials Purchases
Direct Labor Cost per Hour
Total Required Units
Units to be Produced
Cost per Pound
Total Direct Labor Cost
Beginning Direct Materials (Pounds)
Beginning Finished Goods Units
Desired Ending Direct Materials (Pounds)
Direct Labor Time (Hours) per Unit
Desired Ending Finished Goods Units
Total Cost of Direct Materials Purchases
Direct Materials per Unit
Direct Materials Purchases
Total Materials Required
Expected Unit Sales
Total Pounds Needed for Production
Total Required Direct Labor Hours
$
$
Beginning Direct Materials (Pounds)
Direct Labor Time (Hours) per Unit
Total Required Direct Labor Hours
Expected Unit Sales
Cost per Pound
Total Required Units
Total Direct Labor Cost
Beginning Finished Goods Units
Direct Materials Purchases
Total Cost of Direct Materials Purchases
Desired Ending Direct Materials (Pounds)
Units to be Produced
Desired Ending Finished Goods Units
Direct Labor Cost per Hour
Direct Materials per Unit
Total Materials Required
Total Pounds Needed for Production
$
$
$
Prepare the selling and administrative expense budget.
COOK FARM SUPPLY COMPANY
Selling and Administrative Expense Budget
For the Quarter Ending June 30, 2020
For the Six Months Ending June 30, 2020
June 30, 2020
Quarter
Six
Months
1
2
Direct Labor
Direct Materials
Fixed Expenses
Production Units
Sales
Total Selling and Administrative Expenses
Variable Expenses
$
$
$
Direct Labor
Direct Materials
Fixed Expenses
Production Units
Sales
Total Selling and Administrative Expenses
Variable Expenses
$
$
$
Direct Labor
Direct Materials
Fixed Expenses
Production Units
Sales
Total Selling and Administrative Expenses
Variable Expenses
Direct Labor
Direct Materials
Fixed Expenses
Production Units
Sales
Total Selling and Administrative Expenses
Variable Expenses
$
$
$
LINK TO TEXT
LINK TO VIDEO
Your answer is partially correct.Try again.
Prepare the budgeted multiple-step income statement for the first 6 months.(Round intermediate calculations to 2 decimal places and final answer to 0 decimal places, e.g. 1,255.)
COOK FARM SUPPLY COMPANY
Budgeted Income Statement
June 30, 2020
For the Quarter Ending June 30, 2020
For the Six Months Ending June 30, 2020
Ending Inventory
Gross Profit
Selling and Administrative Expenses
Income Tax Expense
Cost of Goods Sold
Income from Operations
Net Income / (Loss)
Operating Expenses
Purchases
Interest Expense
Sales
Total Operating Expenses
Income Before Income Tax
Beginning Inventory
$
Purchases
Beginning Inventory
Income Tax Expense
Net Income / (Loss)
Operating Expenses
Sales
Selling and Administrative Expenses
Total Operating Expenses
Interest Expense
Income Before Income Tax
Cost of Goods Sold
Income from Operations
Ending Inventory
Gross Profit
Gross Profit
Cost of Goods Sold
Purchases
Income from Operations
Income Tax Expense
Income Before Income Tax
Operating Expenses
Beginning Inventory
Ending Inventory
Sales
Selling and Administrative Expenses
Net Income / (Loss)
Total Operating Expenses
Interest Expense
Cost of Goods Sold
Sales
Total Operating Expenses
Operating Expenses
Income from Operations
Gross Profit
Beginning Inventory
Ending Inventory
Net Income / (Loss)
Selling and Administrative Expenses
Income Tax Expense
Purchases
Interest Expense
Income Before Income Tax
Income from Operations
Income Before Income Tax
Selling and Administrative Expenses
Net Income / (Loss)
Gross Profit
Interest Expense
Sales
Cost of Goods Sold
Income Tax Expense
Total Operating Expenses
Operating Expenses
Ending Inventory
Purchases
Beginning Inventory
Cost of Goods Sold
Interest Expense
Net Income / (Loss)
Total Operating Expenses
Income Before Income Tax
Beginning Inventory
Ending Inventory
Gross Profit
Income from Operations
Income Tax Expense
Operating Expenses
Purchases
Sales
Selling and Administrative Expenses
Total Operating Expenses
Operating Expenses
Net Income / (Loss)
Ending Inventory
Gross Profit
Sales
Interest Expense
Purchases
Income from Operations
Selling and Administrative Expenses
Income Before Income Tax
Beginning Inventory
Cost of Goods Sold
Income Tax Expense
Cost of Goods Sold
Income Tax Expense
Sales
Net Income / (Loss)
Income Before Income Tax
Operating Expenses
Income from Operations
Purchases
ddTotal Operating Expenses
Ending Inventory
Interest Expense
Gross Profit
Selling and Administrative Expenses
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College Accounting Chapters 1-9
Authors: James Heintz
22nd Edition
1305888537, 978-1305666184
