wk7
kin2tu
CookFarmSupplyCompanymanufacturesandsellsapesticidecalledSnare.docxCook 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.
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1. |
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Sales: quarter 1, 28,000 bags; quarter 2, 43,400 bags. Selling price is $63 per bag. |
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2. |
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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. |
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3. |
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Desired inventory levels: |
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Type of Inventory |
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January 1 |
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April 1 |
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July 1 |
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Snare (bags) |
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8,400 |
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12,500 |
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18,400 |
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Gumm (pounds) |
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9,500 |
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10,300 |
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13,400 |
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Tarr (pounds) |
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14,500 |
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20,100 |
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25,100 |
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4. |
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Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. |
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5. |
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Selling and administrative expenses are expected to be 15% of sales plus $177,000 per quarter. |
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6. |
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Interest expense is $100,000. |
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7. |
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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 $300,000 in quarter 1 and $424,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)
Prepare the sales budget.
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COOK FARM SUPPLY COMPANY Sales Budget choose the accounting period |
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Quarter |
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Six Months |
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1 |
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2 |
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Expected unit sales |
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enter a number of units |
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enter a number of units |
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enter a number of units |
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Unit selling price |
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$enter a dollar amount |
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$enter a dollar amount |
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$enter a dollar amount |
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Total sales |
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$enter a total dollar amount |
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$enter a total dollar amount |
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$enter a total dollar amount |
Prepare the production budget.
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COOK FARM SUPPLY COMPANY Production Budget choose the accounting period |
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Quarter |
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Six Months |
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1 |
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2 |
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select an opening production budget item |
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enter a number of units |
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enter a number of units |
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select between addition and deduction : select a production budget item |
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enter a number of units |
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enter a number of units |
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select a summarizing line for the first part |
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enter a total number of units for the first part |
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enter a total number of units for the first part |
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select between addition and deduction : select a production budget item |
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enter a number of units |
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enter a number of units |
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select a closing production budget item |
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enter a total number of units |
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enter a total number of units |
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enter a total number of units |
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Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.)
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COOK FARM SUPPLY COMPANY Direct Materials Budget—Gumm choose the accounting period |
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Quarter |
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Six Months |
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1 |
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2 |
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select an opening direct materials budget item |
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enter a number of units |
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enter a number of units |
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select an item |
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enter the amount of pounds |
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enter the amount of pounds |
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select a summarizing line for the first part |
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enter a total amount of pounds for the first part |
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enter a total amount of pounds for the first part |
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select between addition and deduction : select an item |
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enter the amount of pounds |
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enter the amount of pounds |
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select a summarizing line for the second part |
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enter a total amount of pounds for the second part |
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enter a total amount of pounds for the second part |
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select between addition and deduction : select an item |
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enter the amount of pounds |
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enter the amount of pounds |
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select a summarizing line for the third part |
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enter a total amount of pounds for the third part |
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enter a total amount of pounds for the third part |
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select an item |
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$enter a dollar amount |
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$enter a dollar amount |
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select a closing direct materials budget item |
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$enter a total dollar amount |
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$enter a total dollar amount |
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$enter a total dollar amount |
Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.)
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COOK FARM SUPPLY COMPANY Direct Labor Budget choose the accounting period |
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Quarter |
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Six Months |
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1 |
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2 |
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select an opening labor budget item |
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enter a number of units |
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enter a number of units |
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select a labor budget item |
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enter a number of hours |
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enter a number of hours |
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select a summarizing line for the first part |
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enter a total number of hours for the first part |
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enter a total number of hours for the first part |
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select a labor budget item |
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$enter a dollar amount |
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$enter a dollar amount |
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select a closing labor budget item |
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$enter a total dollar amount |
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$enter a total dollar amount |
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$enter a total dollar amount |
Prepare the selling and administrative expense budget.
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COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget choose the accounting period |
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Quarter |
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Six Months |
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1 |
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2 |
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select an item |
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enter a total number of units |
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enter a total number of units |
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enter a total number of units |
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select an item |
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$enter a dollar amount |
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$enter a dollar amount |
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$enter a dollar amount |
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select an item |
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enter a dollar amount |
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enter a dollar amount |
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enter a dollar amount |
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select a closing budget item |
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$enter a total dollar amount |
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$enter a total dollar amount |
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$enter a total dollar amount |
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Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to 0 decimal places, e.g. 1,255.)
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COOK FARM SUPPLY COMPANY Budgeted Income Statement choose the accounting period |
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select an income statement item |
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$enter a dollar amount |
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select an income statement item |
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enter a dollar amount |
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select a summarizing line for the first part |
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enter a total amount for the first part |
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select an income statement item |
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enter a dollar amount |
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select a summarizing line for the second part |
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enter a total amount for the second part |
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select an income statement item |
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enter a dollar amount |
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select a summarizing line for the third part |
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enter a total amount for the third part |
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select an income statement item |
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enter a dollar amount |
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select a closing name for the budgeted income statement |
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$enter a total net income or loss amount |
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Attempts: 0 of 3 used
Submit Answer
