Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

please guve me the correct answers for C Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for

please guve me the correct answers for C image text in transcribed
image text in transcribed
image text in transcribed
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, 28,400 bags: quarter 2,44,000 bags. Selling price is $62 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: Type of Inventory January 1 April 1 July 1 Snare (bags) 8.100 12,500 18,300 Gumm (pounds) 9.100 10,400 13,100 Tarr (pounds) 14,300 20.200 25,400 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 $180.000 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 $301.000 in quarter 1 and $427.500 in quarter 2. Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2020 Quarter Months 28400 44000 Expected Unit Sales 72400 Unit Selling Price 1760800 Total Sales $ 4488800 2728000 Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter Months Expected Unit Sales 29600 GOOO 12500 18300 Add Desired Erding Finished Goods Units Total Required Units 40900 62300 Less Beginning Finished Goods Units 12500 Required Productions 49800 COOK FARM SUPPLY COMPANY Direct Labor Budget For the Six Months Ending June 30, 2020 Quarter Six Months 32800 49800 Units to be produced 0.25 0.25 Direct Labor Time Hours) per Unit 8200 12450 Total Required Direct Labor Hours Direct Labor Cost per Hour 114800 174300 Total Direct Labor Cost 289100 Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the six months Ending June 30, 2020 Quarter Six Months 4455000 1760800 2728000 264120 409200 673320 10000 180000 To Set A strative Ecerse 444 120 589200 853200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Text And Cases

Authors: Robert Anthony, James S. Reece, Kenn Merchant, David Hawkins

11th International Edition

0071232265, 978-0071232265

More Books

Students explore these related Accounting questions