The desired budgets and Income statement is hereunder:
COOK FARM SUPPLY COMPANY | ||||
Direct Materials Budget - tarr | ||||
For the Six months ending June 30, 2020 | ||||
Q1 | Q2 | Six Months | ||
Units to be Produced | 32300 | 49000 | ||
DM per unit | 6 | 6 | ||
Total pounds needed for production | 193800 | 294000 | 487800 | |
add: desired ending direct material,pounds | 20300 | 25300 | ||
Total materials required | 214100 | 319300 | ||
less: Beginning direct materials, pounds | 14400 | 20300 | ||
Direct Mat. Purchases | 199700 | 299000 | ||
Cost per pound | 1.75 | 1.75 | ||
Total cost of Direct Materials purchased | 349475 | 523250 | 872725 | |
COOK FARM SUPPLY COMPANY | ||||
Direct Labor Budget | ||||
For the Six months ending June 30, 2020 | ||||
Q1 | Q2 | Six Months | ||
Units to be produced | 32300 | 49000 | ||
Direct lab. Time per unit, hours | 0.25 | 0.25 | ||
Total required Direct labor hours | 8075 | 12250 | 20325 | |
Direct lab. Cost per hour | 16 | 16 | 16 | |
Total Direct Labor Cost | 129200 | 196000 | 325200 | |
COOK FARM SUPPLY COMPANY | ||||
Selling and Administrative Expense Budget | ||||
For the Six months ending June 30, 2020 | ||||
Q1 | Q2 | Six Months | ||
Sales | 1708000 | 2623000 | 4331000 | |
Variable exp. 15% of sales | 256200 | 393450 | 649650 | |
Fixed expenses | 177000 | 177000 | 354000 | |
Total Selling and Administration Expenses | 433200 | 570450 | 1003650 | |
COOK FARM SUPPLY COMPANY | ||||
Budgeted Income Statement | ||||
For the Six months ending June 30, 2020 | ||||
Amount $ | ||||
Sales | 4331000 | |||
Less: Direct Material expenses | 2398350 | 406500*3.8 + 487800*1.75 | ||
Less:Direct labor expenses | 325200 | |||
Gross Profit | 1607450 | |||
Less: Selling and Admin exp | 1003650 | |||
Income before Interest | 603800 | |||
Less:interest | 100000 | |||
Income before taxes | 503800 | |||
Less:Income taxes | 151140 | |||
Net Income | 352660 |
Question 3 Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data...
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 1,28,600 bags: quarter 2.42,600 bags. Selling price is $63 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: Type of Inventory January 1 8,200...
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, 29,400 bags; quarter 2, 42,400 bags. Selling price is $63 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 Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January...
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. 1. Sales: quarter 1, 29,800 bags; quarter 2,42,400 bags. Selling price is $62 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1...
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, 28,600 bags: quarter 2,42,600 bags. Selling price is $63 per bag. 2. Direct materials: cach bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarrat $1.75 per pound. 3. Desired inventory levels: Type of Inventory Snare (bags) Gumm...
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. 1. Sales: quarter 1, 28,600 bags; quarter 2,43,400 bags. Selling price is $62 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1...
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. 1. Sales: quarter 1, 29,500 bags; quarter 2, 43,900 bags. Selling price is $63 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: Type of Inventory January...
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. 1. Sales: quarter 1, 28,600 bags; quarter 2, 43,400 bags. Selling price is $62 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: Type of Inventory January...
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. 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 $423,500 in quarter 2. Current Attempt in ProgresS Cook Farm...
Question 3 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, 29,400 bags; quarter 2, 42,600 bags. Selling price is $63 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 Tarr at $1.75 per pound. 3. Desired inventory levels: January 1...
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, 29,800 bags; quarter 2, 43,800 bags. Selling price is $63 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 Tarr at $1.75 per pound. 3. Desired inventory levels: Type of Inventory January...