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iPad? 4:55 PM 95% BACK 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 Exercisve21-10 1. Sales: quarter 1, 28,000 bags; quarter 2, 43,300 bags. Seling price is $63 per bag. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. . Desired inventory levels: Snare (bags) 8,400 ,500 18,400 9,500 10,300 13,400 14,500 Gumm (pounds) 20,100 25,100 Review Results by StedyT(pounds) 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 per hour 5. Seling and administrative expenses are expected to be 15% of sales plus $177,000 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 $300,000 in quarter l and $424,500 in quarter 2. Your answer is correct. Prepare the sales budget. Sales Budget Expected unit sales Unitl selling price Total sales Prepare the production budget iPad? 4:55 PM 95% BACK 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 Exercisve21-10 1. Sales: quarter 1, 28,000 bags; quarter 2, 43,300 bags. Seling price is $63 per bag. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. . Desired inventory levels: Snare (bags) 8,400 ,500 18,400 9,500 10,300 13,400 14,500 Gumm (pounds) 20,100 25,100 Review Results by StedyT(pounds) 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 per hour 5. Seling and administrative expenses are expected to be 15% of sales plus $177,000 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 $300,000 in quarter l and $424,500 in quarter 2. Your answer is correct. Prepare the sales budget. Sales Budget Expected unit sales Unitl selling price Total sales Prepare the production budget