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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

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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 1,28,000 bags: quarter 2,42,000 bags. Selling price is $61 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarrat $1.50 per pound. 3. Desired inventory levels: 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour: 5. Selling and administrative expenses are expected to be 15% of sales plus $176,000 per 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 $298.000 in quarter 1 and $422,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) Prepare the direct materials budget (Round Cost per pound answers to 2 decimal ploces, eg 52.70 .) Total Pounds Necded for Production Add : Desired Ending Direct Materials (Pounds) : Total Matoriaks fequired Less v: Beginning Direct Materials (Pounds) Direct Materials Purchases I Cost ner Pound Total Cost of Direct Materials Purchased COOK FARM SUPPLY COMPANY Direct Labor Budget For the Six Months Ending June 30, 2020 Quarter 1 red (Hours) per Unit ect Labor Hoirs perHour Cost $ $ Six Months COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the Slx Months Ending June 30.2020 Quarter 1 5 le Experses 3xpenses ellingand Administrative Expenses $ 2 $ $ $ s Six Months 5 $ (i) Prepare the sales budget COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30,2020 Quarter 1 Expected Unit Sales Add v= Desired Ending Finished Goods Units Total Required Units Less 7 Begining Finished Goods Units Required Production Units

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