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P23-1A Prepare budgeted income statement and supporting budgets. Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for
| P23-1A Prepare budgeted income statement and supporting budgets. | |||||||||||
| 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 2017. | |||||||||||
| 1 | Expected sales (bags of Snare) | Quarter 1: | 40,000 | Price per bag | $60.00 | ||||||
| Quarter 2: | 56,000 | Price per bag | $60.00 | ||||||||
| 2 | Direct Materials (per bag of Snare) | Ingredient Name | Pounds Needed | Cost per Pound | |||||||
| Gumm | 4 | $3.80 | |||||||||
| Tarr | 6 | $1.50 | |||||||||
| 3. Desired inventory levels: | |||||||||||
| Type of Inventory | January 1 | April 1 | July 1 | ||||||||
| Snare (bags) | 8,000 | 15,000 | 18,000 | ||||||||
| Gumm (pounds) | 9,000 | 10,000 | 13,000 | ||||||||
| Tarr (pounds) | 14,000 | 20,000 | 25,000 | ||||||||
| 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. | |||||||||||
| Instructions | |||||||||||
| Using the information above, prepare the budgets below, in the order given. | |||||||||||
| As is the case for every worksheet in every assignment, whereever possible, each cell needs a formula to be counted | |||||||||||
| as correct. | |||||||||||
| COOK FARM SUPPLY COMPANY | |||||||||||
| Sales Budget | As always, each cell requires a formula. | ||||||||||
| For the Six Months Ending June 30, 2017 | |||||||||||
| Quarter | Six | ||||||||||
| 1 | 2 | Months | |||||||||
| Expected unit sales | Value | Value | ? | ||||||||
| Unit selling price | $60 | $60 | $60 | ||||||||
| Total sales | ? | ? | ? | ||||||||
| COOK FARM SUPPLY COMPANY | |||||||||||
| Production Budget | |||||||||||
| For the Six Months Ending June 30, 2017 | |||||||||||
| Quarter | Six | ||||||||||
| 1 | 2 | Months | |||||||||
| Expected unit sales | Value | Value | |||||||||
| Add: Desired ending finished goods units | Value | Value | |||||||||
| Total required units | ? | ? | |||||||||
| Less: Beginning finished goods units | Value | Value | |||||||||
| Required production units | ? | ? | ? | ||||||||
| COOK FARM SUPPLY COMPANY | |||||||||||
| Direct Materials Budget - Gumm | Please note - this is the Direct Materials | ||||||||||
| For the Six Months Ending June 30, 2017 | budget for the *Gumm* Ingredient only!!! | ||||||||||
| Quarter | Six | ||||||||||
| 1 | 2 | Months | |||||||||
| Units to be produced | Value | Value | |||||||||
| Direct materials per unit (lbs.) | X 4lbs | X 4lbs | |||||||||
| Total pounds needed for production | ? | ? | |||||||||
| Add: Desired ending direct materials (lbs.) | Value | Value | |||||||||
| Total materials required | ? | ? | |||||||||
| Less: Beginning direct materials (lbs.) | Value | Value | |||||||||
| Direct materials purchases | ? | ? | |||||||||
| Cost per pound | X $3.80 | X $3.80 | |||||||||
| Total cost of direct materials purchases | ? | ? | ? | ||||||||
| COOK FARM SUPPLY COMPANY | |||||||||||
| Direct Labor Budget | |||||||||||
| For the Six Months Ending June 30, 2017 | |||||||||||
| Quarter | Six | ||||||||||
| 1 | 2 | Months | |||||||||
| Units to be produced | Value | Value | |||||||||
| Direct labor hours per unit | X 1/4 | X 1/4 | |||||||||
| Total required direct labor hours | ? | ? | |||||||||
| Direct labor cost per hour | X $16 | X $16 | |||||||||
| Total direct labor cost | ? | ? | ? | ||||||||
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Wiley CIAexcel Exam Review 2018 Part 1 Internal Audit Basics
Authors: S. Rao Vallabhaneni
1st Edition
1119482569, 978-1119482567
