Master Budget
Bbgordon91
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, 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 $3.80 per pound and 6 pounds of Tarr at $1.50 per pound.3.Desired inventory levels:
Type of InventoryJanuary 1April 1July 1Snare (bags)8,10012,10018,100Gumm (pounds)9,50010,30013,100Tarr (pounds)14,10020,10025,200
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 $179,000 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 $303,000 in quarter 1 and $422,500 in quarter 2.
(Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)
Prepare the sales budget.
- 3 years ago
- 30
Purchase the answer to view it
- 100CORRECT_ACC556_Project2_MasterBudget_ANSWERED.xlsx
- Assignment 7, 2 pages, use APA formatting and referencing.
- Assignment 1000words
- NEW ASSIGNMENT due 2/23/15 6pm
- ASAP
- ARTS 100 Week 2 Individual Assignment Music Experience Descriptions
- Please see attached document for instruction, thanks.
- CPMGT301 week 3 FOR AlgebraExpert
- I need someone to do a HSA paper for me
- Risk Management
- Research paper