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.
Solution :
Sales Budget - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Expected unit sales | 29500 | 43900 | 73400 |
Unit selling price | $63.00 | $63.00 | $63.00 |
Budgeted Sales Revenue | $1,858,500.00 | $2,765,700.00 | $4,624,200.00 |
Production Budget - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Expected unit sales | 29500 | 43900 | 73400 |
Add: Desired ending finished goods units | 12300 | 18100 | 18100 |
Total required units | 41800 | 62000 | 91500 |
Less: Beginning finished goods units | 8200 | 12300 | 8200 |
Budgeted production units | 33600 | 49700 | 83300 |
Direct Material Budget - Gumm - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Budgeted production units | 33600 | 49700 | 83300 |
Material needed per unit | 5 | 5 | 5 |
Total material requirement to meet production | 168000 | 248500 | 416500 |
Add: Desired units of material of Gumm in ending inventory | 10100 | 13300 | 13300 |
Total needs | 178100 | 261800 | 429800 |
Less: units of material in beginning inventory | 9300 | 10100 | 9300 |
Budgeted purchase units of Gumm (In Pound) | 168800 | 251700 | 420500 |
Cost per pound | $3.80 | $3.80 | $3.80 |
Budgeted cost of raw material purchases | $641,440.00 | $956,460.00 | $1,597,900.00 |
Direct Labor Budget - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Unit to Produce | 33600 | 49700 | 83300 |
Direct labor required per unit (in hrs) | 0.25 | 0.25 | 0.25 |
Required direct labor hours | 8400 | 12425 | 20825 |
Labor rate | $14.00 | $14.00 | $14.00 |
Budgeted direct labor cost | $117,600.00 | $173,950.00 | $291,550.00 |
Selling and Administrative expenses Budget - Cook Farm Supply Company | |||
Particulars | Q1 | Q2 | 6 Months |
Variable selling expenses (15% of sales) | $278,775.00 | $414,855.00 | $693,630.00 |
Fixed selling expenses | $180,000.00 | $180,000.00 | $360,000.00 |
Budgeted selling and administrative expenses | $458,775.00 | $594,855.00 | $1,053,630.00 |
Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing...
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 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...
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 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 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: 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...
Problem 9-1A (Part Level Submission) 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, 43,700 bags. Selling price is $63 per bag 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.75 per pound 3. Desired inventory...
Problem 9-1A (Part Level Submission) 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, 43,700 bags. Selling price is $63 per bag 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.75 per pound 3. Desired inventory...