Question

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 1

April 1

July 1

Snare (bags) 8,500 12,200 18,500
Gumm (pounds) 9,300 10,400 13,100
Tarr (pounds) 14,400 20,500 25,300
4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour.
5. Selling and administrative expenses are expected to be 15% of sales plus $176,000 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 $298,000 in quarter 1 and $423,500 in quarter 2.

(Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)
(a) Your answer is correct. Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30

Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter Six(b) Your answer is correct. Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.7Total Materials Required Less 9 Beginning Direct Materials (Pounds) A Direct Materials Purchases 142800 9300] | 133500 3.80 $Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportionPrepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget For

Please help me with this part !

(c) Prepare the budgeted multiple-step income statement for the first 6 months. calculations to 2 decimal places and final an

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COOK FARM SUPPLY COMPANY Budgeted Income Statement For the six months Ending June 30, 2020 Sales Cost of Goods Sold Gross pro

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