The only part that is wrong is the 3 numbers for sales on the Selling and Adminstrative Expense Budget
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. 2 Sales:quarter 1, 29,800 bags:quarter 2,42,400 bags. Selling price is $62 per bag. Direct materials: each bag of Snare requires 4 pounds of Gummat a cost of $3,80 per pound and 6 pounds of Tarr at $1.50 per pound. Desired inventory levels: 3. Type of Inventory Snare (bags) January 1 April 1 July 1 8,300 12,400 18,100 Gumm (pounds) 9.300 10,500 13,300 Tarr (pounds) 14,300 20,400 25,400 4. 5. Direct labor direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $178,000 per quarter. Interest expense is $100,000 Income taxes are expected to be 30% of income before income taxes. 6 7. 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 1 and $426,500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2020 Quarter 1 Six Months 2 Expected Unit Sales 29800 42400 72.200 Unit Selling Price $ 62 62 $ 62 Total Sales 1,847,600 $ 2,628,800 $ 4,476,400 Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter Six Months 2 29800 42400 ed Ending Finished Goods Units 12400 18100 42200 60500 ining Finished Goods Units 8300 i 12400 i Units 33900 48100 8 e Textbook and Media Attempts: 3 of 5 used (b) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm For the Six Months Ending June 30, 2020 Quarter 1 2 Units to be produced 33900 48100 Direct Materials per Unit 4 4 Total Pounds Needed for Production 135600 192400 Add : Desired Ending Direct Materials (Pounds) 10500 13300 Total Materials Required 146100 205700 Less : Beginning Direct Materials (Pounds) 9300 10500 Direct Materials Purchases 136800 195200 Cost per Pound $ 3.80 3.80 Total Cost of Direct Materials Purchases $ 519840 $ 741760 Prepare the direct labor n COOK FARM SUPPLY COMPANY Direct Labor Budget For the Six Months Ending June 30, 2020 Quarter S Moi 2 Units to be Produced 33900 48100 Direct Labor Time (Hours) per Unit 0.25 0.25 Total Required Direct Labor Hours 8475 12025 DirectLabor Cost per Hour 16 16 Total Direct Labor Cost 135600 $ 192400 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 1 2 Six Months $ $ 29800 42400 $ 72200 anses $ 277140 $ 394320 $ 671460 es 178000 178000 356000 ind Administrative Expenses V $ 455140 $ 572320 $ 1027460 e Textbook and Media
