TILGER FARM SUPPLY COMPANY TILGER FA SUPPLY COMPANY udget g June 30, 2005 Budget For the Six Months Ending June 30, 2005 For the Six Months Fod Quarter 1 Quarter Six Months Expected unit sales selting price.. sales 45.000 Months 95,000 X $60 $5,700,000 60,000 Direct labor time (hours) per unit Total required direct labor hours. Direct labor cost per hour Total direct labor cost.v 2 105,000 40,000 X 25 25 26,250 55,000 X $60 $3.300.000 11.250 X $12 $135.000 $2.400.000 x $12 $180.000 $315.000 TILGER FARM SUPPLY TILGER FARM SUPPLY COMPANY Selling and Administrative E PANY For the Six Months Ending June 30, 2005 ion Budget For the Six Months Ending June 30, 2005 Quarter Quarter Six Six 1 2 Months 1 Months Actacted unit sales. units Total required units Less: Beginning finished goods units Required production units Budgeted sales in units (.10 X sales). 40,000 $240,000 55,000 $330,000 40,000 95,000 $570,000 55,000 95,000 ending finished goods Des Fixed.. 15,000 00000 20.000 20,000 $390.000 $480,000 Total. 15.000 60,000 10.000 45,000 105.000 Tilger Farm Supply Company manufactures and sells a fertilizer called Basi data are available for preparing budgets for Basic II for the first 2 qu P9-1A TILGER FARM SUPPLY COMPANY Direct Materials Budget-Crup For the Six Months Ending June 30, 2005 ters of 2005. -1. Sales: Quarter 1, 40,000 bags 2. Direct materials: Each bag of Basic II reuir & pound and 10 pounds of Dert at $1.50 per pound. 3. Desired inventory levels: 2, 55,000 ou per bag p Quarter Six 105.000 60,000 Units to be produced. 45,000 Type of Inventory July 1 April 1 15,000 January 1 Total pounds needed for production... Add: Desired ending direct materials 360,000 270,000 630,000 Basic (bags) 10,000 20,000 12.000 282,000 15,000 375,000 15,000 645,000 (pounds). Dert ( 15.000 20.000 25.000 Total materials required. Less: Be 4. Direct labor: Direct labor time is 15 minutes per bag at an hourly rate of $12 per hc . Selling and administrative expenses are expected to be 10 % of sales plus $150,0001 12.000 363,000 X $3 9.000 636,000 X$3 (DoU rect materials 9,000 273.000 X $3 Direct materials purchases. Cost per pound Total cost of direct materials purchases... . Income taxes are expected to be 30 % of income from operations. $1.908.000 $1.089.000 $819.000 uring overhead bud The direct materials budget f Your assistant has prepared two budgets: (1) The ma sho Dert which shows the cost of ert to be $682.500 in quarter 1 and $907,500 in quarter Instructions dgeted income statement for the first 6 months of 2005 and all requir (Note: Use variable and fixed in the selling and admi supporti istrative expense budget.) Do not prepare the manufacturing overbead budget or the rect materials budget for Dert. WA