JS Kimmel, Accounting, 60 CALDULATOR PRINTER VERON RACK Problem 21-1A (Part Level Submission) Cook Farm Supply Company manufactures and sells a pesticide called Share. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017 1. Sales: quarter 1, 28,600 bags: quarter 2, 42,600 bags. Selling price is $63 per bag. 2. Direct materials each bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Torr at $1.75 per pound. 3. Desired Inventory levels: Type of Inventory January 1 April 1 July 1 Share (as) 8.200 12,100 18,500 Gumm (pounds) 9,400 10,300 13,400 Tart (pounds) 14,500 20,100 25,500 4 Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hout 5. Selling and administrative expenses are expected to be 15% of sales plus $175,000 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 The purchases to be $300,000 in quarter 1 and $422.500 in quarter 2 (a) (b) Prepare the direct materials budget. (Round cost per pound answers to 2 decimal places, c.9. 52.70) COOK FARM SUPPLY COMPANY Direct Materiais Budget Gumm For the Six Months Ending June 30, 2012, Quarter SEX 1 2 Months Units to be produced Direct Materials per Unit Total Pounds needed for Production MacBook Air NESOURC Homework ise 21 21-5 22-2A Pere bmission 219 (b) 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 For the Six Months Ending June 30, 2017 Quarter Sbx Months 2 ults by Study Units to be produced Direct Materials per Unit Total Pounds Needed for Production Add. Desired Ending Direct Materials Total Materials Required Less Beginning Direct Materials Direct Materials Purchases Cost per Pound . Total Cost of Direct Materials Purchases : $ 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 Quarter 1 2 Six Months MacBook Air CALELLATOR TE VERE ENNENT RESOURCES ter 21 Homework Exercise 213 E 21-5 blem 21-1A (Part elSubmission Exercise 21-0 Prepare the direct labor budget. (Enter Direct labor time perante in proportion to hours, ep. for 45 minutes the proportion will be 0.7.) COOK FARM SUPPLY COMPANY Direct Labor Budget Quarter 51 Months 2 w Score w Results by Study Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter Six Months $ $ Click if you would like to show Work for this question Open Show Work MacBook Air