Sales Budget - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Expected unit sales | 29,400.00 | 42,600.00 | 72,000.00 |
Unit selling price | $63.00 | $63.00 | $63.00 |
Budgeted Sales Revenue | $1,852,200.00 | $2,683,800.00 | $4,536,000.00 |
Production Budget - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Expected unit sales | 29,400.00 | 42,600.00 | 72,000.00 |
Add: Desired ending finished goods units | 12,200.00 | 18,100.00 | 18,100.00 |
Total required units | 41,600.00 | 60,700.00 | 90,100.00 |
Less: Beginning finished goods units | 8,100.00 | 12,200.00 | 8,100.00 |
Budgeted production units | 33,500.00 | 48,500.00 | 82,000.00 |
Direct Material Budget - Gumm - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Budgeted production units | 33,500.00 | 48,500.00 | 82,000.00 |
Material needed per unit | 4 | 4 | 4 |
Total material requirement to meet production | 134,000.00 | 194,000.00 | 328,000.00 |
Add: Desired units of material of Gumm in ending inventory | 10,100.00 | 13,200.00 | 13,200.00 |
Total needs | 144,100.00 | 207,200.00 | 341,200.00 |
Less: units of material in beginning inventory | 9,500.00 | 10,100.00 | 9,500.00 |
Budgeted purchase units of Gumm (In Pound) | 134,600.00 | 197,100.00 | 331,700.00 |
Cost per pound | $3.80 | $3.80 | $3.80 |
Budgeted cost of raw material purchases | $511,480.00 | $748,980.00 | $1,260,460.00 |
Direct Labor Budget - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Unit to Produce | 33,500.00 | 48,500.00 | 82,000.00 |
Direct labor required per unit (in hrs) | 0.25 | 0.25 | 0.25 |
Required direct labor hours | 8,375.00 | 12,125.00 | 20,500.00 |
Labor rate | $16.00 | $16.00 | $16.00 |
Budgeted direct labor cost | $ 134,000.00 | $ 194,000.00 | $ 328,000.00 |
Selling and Administrative expenses Budget - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Variable selling expenses (15% of sales) | $277,830.00 | $402,570.00 | $680,400.00 |
Fixed selling expenses | $179,000.00 | $179,000.00 | $358,000.00 |
Budgeted selling and administrative expenses | $456,830.00 | $581,570.00 | $1,038,400.00 |
COOK FARM SUPPLY COMPANY | |||
Budgeted Income Statement | |||
For The Six Month Ending June 30, 2020 | |||
Sales | $4,536,000 | ||
Cost of Goods Sold [working note 1 below] | $2,417,400 | ||
Gross Profit | $2,118,600 | ||
Selling and Administrative Expenses | $1,038,400 | ||
Income from operatations | $1,080,200 | ||
Interest expense | $100,000 | ||
Income before Income Taxes | $980,200 | ||
Income Tax Expense @ 30% | $294,060 | ||
Net Income / (Loss) | $686,140 | ||
. | |||
Computation of Cost per unit | |||
Direct materials: | |||
Gumm (4 pounds x $3.80) | $ 15.20 | ||
Tarr (6 pounds x $1.75) | $ 10.50 | ||
Direct labor (0.25 hours x $14) | $ 3.50 | ||
Manufactured overhead budget [Direct labor cost x 125% = $3.5 x 125%] | $ 4.38 | ||
Cost per unit | $ 33.58 | ||
Quarter 1 | Quarter 2 | 6 months | |
Number of snare bags sold (a) | 29,400 | 42,600 | |
Total cost per unit [Refer working note 2] (b) | $ 33.58 | $ 33.58 | |
Cost of Goods Sold (a x b) | $987,105 | $1,430,295 | $2,417,400 |
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 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. 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 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. 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...
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, 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, 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...
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, 28,400 bags; quarter 2, 42,200 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 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...
P24.1A (LO 2, 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, 40,000 bags; quarter 2, 56,000 bags. Selling price is $60 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:...