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Sandhill Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2
Sandhill Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first quarters of
Sales: quarter bags; quarter bags. Selling price is $ per bag.
Direct materials: each bag of Snare requires pounds of Gumm at a cost of $ per pound and pounds of Tarr at $ per pound.
Desired inventory levels:
tableType of Inventory,January April July Snare bagsGumm poundsTarr pounds
Direct labor: direct labor time is minutes per bag at an hourly rate of $ per hour.
Selling and administrative expenses are expected to be of sales plus $ per quarter.
Interest expense is $ for the quarters.
Income taxes are expected to be of income before income taxes.
Your assistant has prepared two budgets: the manufacturing overhead budget shows expected costs to be of direct labor cost, and the direct materials budget for Tarr shows the cost of Tarr purchases to be $ in quarter and $ in quarter
Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.
Prepare the budgeted multiplestep income statement for the first months. Round intermedlate calculatlons to decimal places and final answer to declmal places, eg
SANDHILL FARM SUPPLY COMPANY Budgeted Income Statement
For the Six Months Ending June
$
Gross Profit
Selling and Administrative Expenses
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