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 1,28,400bags; quarter 2,42,200bags. 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) 8,500 12,300 18,100

Gumm (pounds) 9,300 10,300 13,100

Tarr (pounds) 14,300 20,500 25,100

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 $176,000per 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 $299,000in quarter 1 and $427,500in quarter 2.

(Note:Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)

Partially correct answer icon

Your answer is partially correct.

Prepare the sales budget.

COOK FARM SUPPLY COMPANY

Sales Budget

choose the accounting period

June 30, 2020

For the Quarter Ending June 30, 2020

For the Six Months Ending June 30, 2020

Quarter

Six

Months

1

2

Expected unit salesenter a number of units

enter a number of units

enter a number of units

Unit selling price$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

Total sales$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

Prepare the production budget.

COOK FARM SUPPLY COMPANY

Production Budget

choose the accounting period

June 30, 2020

For the Quarter Ending June 30, 2020

For the Six Months Ending June 30, 2020

Quarter

Six

Months

1

2

select an opening production budget item

Direct Materials per Unit

Direct Materials Purchases

Required Production Units

Cost per Pound

Expected Unit Sales

Total Required Direct Labor Hours

Total Direct Labor Cost

Direct Labor Time per Unit

Desired Ending Direct Materials

Total Required Units

Total Cost of Direct Materials Purchases

Direct Labor Cost per Hour

Beginning Finished Goods Units

Total Pounds Needed for Production

Beginning Direct Materials

Total Materials Required

Desired Ending Finished Goods Units

enter a number of units

enter a number of units

select between addition and deduction

Add

Less

:

select a production budget item

Beginning Finished Goods Units

Direct Labor Time per Unit

Required Production Units

Direct Materials per Unit

Total Required Units

Beginning Direct Materials

Expected Unit Sales

Cost per Pound

Desired Ending Finished Goods Units

Total Pounds Needed for Production

Total Cost of Direct Materials Purchases

Total Materials Required

Direct Labor Cost per Hour

Desired Ending Direct Materials

Total Required Direct Labor Hours

Direct Materials Purchases

Total Direct Labor Cost

enter a number of units

enter a number of units

select a summarizing line for the first part

Total Direct Labor Cost

Direct Labor Time per Unit

Desired Ending Finished Goods Units

Required Production Units

Total Materials Required

Beginning Finished Goods Units

Desired Ending Direct Materials

Beginning Direct Materials

Total Required Units

Direct Materials per Unit

Cost per Pound

Direct Materials Purchases

Expected Unit Sales

Total Pounds Needed for Production

Direct Labor Cost per Hour

Total Required Direct Labor Hours

Total Cost of Direct Materials Purchases

enter a total number of units for the first part

enter a total number of units for the first part

select between addition and deduction

Add

Less

:

select a production budget item

Beginning Direct Materials

Desired Ending Direct Materials

Direct Labor Time per Unit

Cost per Pound

Total Cost of Direct Materials Purchases

Total Pounds Needed for Production

Desired Ending Finished Goods Units

Required Production Units

Direct Labor Cost per Hour

Total Materials Required

Total Required Units

Total Required Direct Labor Hours

Total Direct Labor Cost

Direct Materials Purchases

Beginning Finished Goods Units

Direct Materials per Unit

Expected Unit Sales

enter a number of units

enter a number of units

select a closing production budget item

Total Direct Labor Cost

Required Production Units

Total Pounds Needed for Production

Direct Materials per Unit

Total Required Units

Desired Ending Finished Goods Units

Direct Labor Time per Unit

Total Cost of Direct Materials Purchases

Direct Materials Purchases

Beginning Direct Materials

Cost per Pound

Total Materials Required

Desired Ending Direct Materials

Direct Labor Cost per Hour

Beginning Finished Goods Units

Expected Unit Sales

Total Required Direct Labor Hours

enter a total number of units

enter a total number of units

enter a total number of units

eTextbook and Media

Partially correct answer icon

Your answer is partially correct.

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

choose the accounting period

For the Quarter Ending June 30, 2020

For the Six Months Ending June 30, 2020

June 30, 2020

Quarter

Six

Months

1

2

select an opening direct materials budget item

Direct Materials Purchases

Units to be Produced

Expected Unit Sales

Total Required Units

Total Required Direct Labor Hours

Direct Labor Cost per Hour

Total Pounds Needed for Production

Total Direct Labor Cost

Total Materials Required

Beginning Finished Goods Units

Direct Materials per Unit

Beginning Direct Materials (Pounds)

Cost per Pound

Desired Ending Direct Materials (Pounds)

Desired Ending Finished Goods Units

Total Cost of Direct Materials Purchases

Direct Labor Time (Hours) per Unit

enter a number of units

enter a number of units

select an item

Expected Unit Sales

Desired Ending Finished Goods Units

Total Direct Labor Cost

Direct Labor Time (Hours) per Unit

Cost per Pound

Total Required Units

Desired Ending Direct Materials (Pounds)

Units to be Produced

Direct Labor Cost per Hour

Beginning Finished Goods Units

Total Cost of Direct Materials Purchases

Total Pounds Needed for Production

Beginning Direct Materials (Pounds)

Direct Materials Purchases

Total Materials Required

Total Required Direct Labor Hours

Direct Materials per Unit

enter the amount of pounds

enter the amount of pounds

select a summarizing line for the first part

Desired Ending Direct Materials (Pounds)

Direct Materials Purchases

Units to be Produced

Total Materials Required

Total Direct Labor Cost

Cost per Pound

Total Cost of Direct Materials Purchases

Total Required Units

Total Required Direct Labor Hours

Desired Ending Finished Goods Units

Direct Labor Time (Hours) per Unit

Beginning Finished Goods Units

Total Pounds Needed for Production

Beginning Direct Materials (Pounds)

Expected Unit Sales

Direct Materials per Unit

Direct Labor Cost per Hour

enter a total amount of pounds for the first part

enter a total amount of pounds for the first part

select between addition and deduction

Add

Less

:

select an item

Desired Ending Finished Goods Units

Units to be Produced

Direct Materials per Unit

Desired Ending Direct Materials (Pounds)

Total Required Direct Labor Hours

Expected Unit Sales

Beginning Finished Goods Units

Cost per Pound

Direct Labor Time (Hours) per Unit

Beginning Direct Materials (Pounds)

Total Materials Required

Total Direct Labor Cost

Direct Materials Purchases

Direct Labor Cost per Hour

Total Cost of Direct Materials Purchases

Total Pounds Needed for Production

Total Required Units

enter the amount of pounds

enter the amount of pounds

select a summarizing line for the second part

Beginning Direct Materials (Pounds)

Cost per Pound

Total Required Units

Units to be Produced

Total Required Direct Labor Hours

Beginning Finished Goods Units

Total Materials Required

Desired Ending Direct Materials (Pounds)

Direct Labor Time (Hours) per Unit

Direct Materials per Unit

Direct Labor Cost per Hour

Desired Ending Finished Goods Units

Total Direct Labor Cost

Direct Materials Purchases

Total Cost of Direct Materials Purchases

Total Pounds Needed for Production

Expected Unit Sales

enter a total amount of pounds for the second part

enter a total amount of pounds for the second part

select between addition and deduction

Add

Less

:

select an item

Total Required Units

Cost per Pound

Total Materials Required

Beginning Finished Goods Units

Total Cost of Direct Materials Purchases

Direct Labor Time (Hours) per Unit

Desired Ending Finished Goods Units

Total Required Direct Labor Hours

Total Direct Labor Cost

Direct Labor Cost per Hour

Units to be Produced

Direct Materials Purchases

Direct Materials per Unit

Desired Ending Direct Materials (Pounds)

Beginning Direct Materials (Pounds)

Total Pounds Needed for Production

Expected Unit Sales

enter the amount of pounds

enter the amount of pounds

select a summarizing line for the third part

Beginning Direct Materials (Pounds)

Direct Materials Purchases

Total Required Direct Labor Hours

Total Cost of Direct Materials Purchases

Direct Labor Time (Hours) per Unit

Desired Ending Finished Goods Units

Expected Unit Sales

Total Direct Labor Cost

Cost per Pound

Direct Materials per Unit

Total Pounds Needed for Production

Desired Ending Direct Materials (Pounds)

Units to be Produced

Total Materials Required

Beginning Finished Goods Units

Total Required Units

Direct Labor Cost per Hour

enter a total amount of pounds for the third part

enter a total amount of pounds for the third part

select an item

Expected Unit Sales

Total Materials Required

Beginning Finished Goods Units

Desired Ending Direct Materials (Pounds)

Direct Labor Time (Hours) per Unit

Total Pounds Needed for Production

Cost per Pound

Beginning Direct Materials (Pounds)

Total Required Direct Labor Hours

Desired Ending Finished Goods Units

Direct Labor Cost per Hour

Total Required Units

Units to be Produced

Direct Materials Purchases

Total Direct Labor Cost

Total Cost of Direct Materials Purchases

Direct Materials per Unit

$

enter a dollar amount

$

enter a dollar amount

select a closing direct materials budget item

Direct Materials Purchases

Total Direct Labor Cost

Total Materials Required

Total Cost of Direct Materials Purchases

Direct Labor Cost per Hour

Units to be Produced

Total Required Direct Labor Hours

Direct Labor Time (Hours) per Unit

Expected Unit Sales

Desired Ending Direct Materials (Pounds)

Desired Ending Finished Goods Units

Total Required Units

Direct Materials per Unit

Cost per Pound

Beginning Direct Materials (Pounds)

Beginning Finished Goods Units

Total Pounds Needed for Production

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

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

choose the accounting period

June 30, 2020

For the Quarter Ending June 30, 2020

For the Six Months Ending June 30, 2020

Quarter

Six

Months

1

2

select an opening labor budget item

Total Direct Labor Cost

Total Required Direct Labor Hours

Desired Ending Direct Materials (Pounds)

Expected Unit Sales

Total Cost of Direct Materials Purchases

Cost per Pound

Total Materials Required

Direct Materials per Unit

Direct Labor Time (Hours) per Unit

Direct Materials Purchases

Total Required Units

Desired Ending Finished Goods Units

Beginning Direct Materials (Pounds)

Direct Labor Cost per Hour

Units to be Produced

Total Pounds Needed for Production

Beginning Finished Goods Units

enter a number of units

enter a number of units

select a labor budget item

Expected Unit Sales

Total Required Units

Desired Ending Direct Materials (Pounds)

Cost per Pound

Desired Ending Finished Goods Units

Direct Materials per Unit

Beginning Finished Goods Units

Total Pounds Needed for Production

Direct Labor Time (Hours) per Unit

Direct Materials Purchases

Direct Labor Cost per Hour

Beginning Direct Materials (Pounds)

Total Materials Required

Total Cost of Direct Materials Purchases

Total Direct Labor Cost

Units to be Produced

Total Required Direct Labor Hours

enter a number of hours

enter a number of hours

select a summarizing line for the first part

Beginning Finished Goods Units

Total Materials Required

Total Direct Labor Cost

Direct Labor Cost per Hour

Cost per Pound

Direct Materials Purchases

Total Required Units

Desired Ending Direct Materials (Pounds)

Beginning Direct Materials (Pounds)

Expected Unit Sales

Total Required Direct Labor Hours

Total Pounds Needed for Production

Units to be Produced

Direct Materials per Unit

Total Cost of Direct Materials Purchases

Direct Labor Time (Hours) per Unit

Desired Ending Finished Goods Units

enter a total number of hours for the first part

enter a total number of hours for the first part

select a labor budget item

Desired Ending Direct Materials (Pounds)

Expected Unit Sales

Direct Labor Cost per Hour

Direct Materials per Unit

Total Required Direct Labor Hours

Direct Labor Time (Hours) per Unit

Total Required Units

Desired Ending Finished Goods Units

Cost per Pound

Beginning Direct Materials (Pounds)

Direct Materials Purchases

Beginning Finished Goods Units

Total Cost of Direct Materials Purchases

Total Direct Labor Cost

Units to be Produced

Total Materials Required

Total Pounds Needed for Production

$

enter a dollar amount

$

enter a dollar amount

select a closing labor budget item

Total Materials Required

Cost per Pound

Direct Materials per Unit

Desired Ending Finished Goods Units

Total Required Direct Labor Hours

Desired Ending Direct Materials (Pounds)

Total Pounds Needed for Production

Total Cost of Direct Materials Purchases

Direct Materials Purchases

Total Required Units

Direct Labor Time (Hours) per Unit

Beginning Direct Materials (Pounds)

Total Direct Labor Cost

Units to be Produced

Expected Unit Sales

Beginning Finished Goods Units

Direct Labor Cost per Hour

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

Prepare the selling and administrative expense budget.

COOK FARM SUPPLY COMPANY

Selling and Administrative Expense Budget

choose the accounting period

For the Six Months Ending June 30, 2020

June 30, 2020

For the Quarter Ending June 30, 2020

Quarter

Six

Months

1

2

select an item

Budgeted sales in units

Variable Cost

Fixed Cost

Total

enter a total number of units

enter a total number of units

enter a total number of units

select an item

Total

Fixed Cost

Budgeted sales in units

Variable Cost

$

enter a dollar amount

$

enter a dollar amount

$

enter a dollar amount

select an item

Budgeted sales in units

Fixed Cost

Variable Cost

Total

enter a dollar amount

enter a dollar amount

enter a dollar amount

select a closing budget item

Total

Fixed Cost

Budgeted sales in units

Variable Cost

$

enter a total dollar amount

$

enter a total dollar amount

$

enter a total dollar amount

eTextbook and Media

Partially correct answer icon

Your answer is partially correct.

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

choose the accounting period

June 30, 2020

For the Quarter Ending June 30, 2020

For the Six Months Ending June 30, 2020

select an income statement item

Purchases

Beginning Inventory

Income from Operations

Selling and Administrative Expenses

Net Income / (Loss)

Operating Expenses

Income Before Income Tax

Gross Profit

Cost of Goods Sold

Ending Inventory

Total Operating Expenses

Interest Expense

Income Tax Expense

Sales

$

enter a dollar amount

select an income statement item

Gross Profit

Operating Expenses

Income from Operations

Total Operating Expenses

Purchases

Income Before Income Tax

Beginning Inventory

Cost of Goods Sold

Interest Expense

Sales

Net Income / (Loss)

Selling and Administrative Expenses

Income Tax Expense

Ending Inventory

enter a dollar amount

select a summarizing line for the first part

Sales

Income from Operations

Selling and Administrative Expenses

Ending Inventory

Operating Expenses

Purchases

Total Operating Expenses

Interest Expense

Income Tax Expense

Beginning Inventory

Income Before Income Tax

Cost of Goods Sold

Net Income / (Loss)

Gross Profit

enter a total amount for the first part

select an income statement item

Operating Expenses

Interest Expense

Cost of Goods Sold

Ending Inventory

Purchases

Gross Profit

Selling and Administrative Expenses

Total Operating Expenses

Income Before Income Tax

Income Tax Expense

Income from Operations

Net Income / (Loss)

Sales

Beginning Inventory

enter a dollar amount

select a summarizing line for the second part

Interest Expense

Total Operating Expenses

Purchases

Income Tax Expense

Income Before Income Tax

Income from Operations

Net Income / (Loss)

Cost of Goods Sold

Ending Inventory

Gross Profit

Selling and Administrative Expenses

Sales

Beginning Inventory

Operating Expenses

enter a total amount for the second part

select an income statement item

Total Operating Expenses

Income from Operations

Net Income / (Loss)

Selling and Administrative Expenses

Interest Expense

Income Tax Expense

Purchases

Cost of Goods Sold

Income Before Income Tax

Operating Expenses

Sales

Beginning Inventory

Gross Profit

Ending Inventory

enter a dollar amount

select a summarizing line for the third part

Purchases

Ending Inventory

Selling and Administrative Expenses

Cost of Goods Sold

Income Before Income Tax

Total Operating Expenses

Income Tax Expense

Beginning Inventory

Net Income / (Loss)

Operating Expenses

Interest Expense

Sales

Gross Profit

Income from Operations

enter a total amount for the third part

select an income statement item

Selling and Administrative Expenses

Net Income / (Loss)

Beginning Inventory

Sales

Cost of Goods Sold

Total Operating Expenses

Interest Expense

Income from Operations

Gross Profit

Income Before Income Tax

Ending Inventory

Income Tax Expense

Purchases

Operating Expenses

enter a dollar amount

select a closing name for the budgeted income statement

Cost of Goods Sold

Income Before Income Tax

Gross Profit

Income Tax Expense

Selling and Administrative Expenses

Interest Expense

Beginning Inventory

Operating Expenses

Income from Operations

Ending Inventory

Net Income / (Loss)

Purchases

Total Operating Expenses

Sales

$

enter a total net income or loss amount