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Question 5 of 5 26.67 / 80 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. Sales: quarter 1.28,200 bags: quarter 2.43,400 bags. Selling price is $63 per bag Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3,80 per pound and 6 pounds of Tarrat 2 $1.50 per pound 3. Desired inventory levels: 1 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8.100 9.100 14,200 April 1 12,500 10.200 20.500 July 1 18,300 13,100 25,500 4. 5. Direct labor; direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $177,000 per quarter. Interest expense is $100,000. Income taxes are expected to be 30% of income before income taxes. 7. 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 Tare purchases to be $303,000 in quarter 1 and $423,500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) 26.67 / 80 iii Question 5 of 5 Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2020 Quarter Six Months 1 2 Expected unit sales 28200 43400 71600 Unit selling price s 63 $ 63 $ 63 Total sales s 1776600 $ 2734200 s 4510800 Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter 1 2 Expected Unit Sales 28200 43400 Add 12500 18300 Desired Ending Finished Goods Units OBE E 13 2 ucation.wiley.com/wav/V2/assessment-player/index.html Maunchid=16ae25 235 4265-b716 840af31b1581/question4 Question 5 of 5 26.67/80 I!! COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30.2020 Quarter 1 2 Expected Unit Sales 28200 43400 Add Desired Ending Finished Goods Units 12500 18300 Total Required Units 40700 61700 Less Beginning Finished Goods Units 8100 i 12500 i Required Production Units 32600 49200 e Textbook and Media Attempts: 2 of 3 used (b) Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, eg. 52.700 Question 5 of 5 26.67 / 80 Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter 1 2 > > 26.67 / 80 $ Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, eg for 45 minutes the proportion will be 0.75) COOK FARM SUPPLY COMPANY Direct Labor Budget Quarter 1 2 > > $ $ $ Prepare the selling and administrative expense budget. COOK CADM CHIDDI VAMDANV O I Question 5 of 5