Problen, 9. 1A (part level Submission) Cook Farm Supply Company manufactures and
ID: 2438649 • Letter: P
Question
Problen, 9. 1A (part level Submission) Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are aao aralable for preparing bdgets for 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 S pounds of Gumm at a cost of $3.8 per pound and 6 pounds of ar t 1.50 pr pound 3. Desired inventory levels thhe tt 2-inf 2017. Tvpe of Snare (bags) 2.300 18,300 9,400 10,500 13,500 14,30020,400 25,100 Gumm (pounds) Tarr (pounds) 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour 6. Interest expense is $100,000 7. Income taxes are expected to be 30% of income before income tane. ewide eerhead budget shows spected cost, "be 125% of Your assistant has prepared two budgets: (1) the manufacturing materials budget for Ta) the manufacturing overhead budget or the diredt Prepare the salesExplanation / Answer
Ans:
a.) Sales Budget are prepared to indentify the expected sales, so that finished goods required for such sales can be produced.
Cook Farm Supply Company
Sales Budget
Particulars
Quarter
Six Months
1
2
Expected Unit Sales
28600
43400
72000
Unit Selling Price
62
62
62
Total Sales
1773200
2690800
4464000
b.)
Cook Farm Supply Company
Production Budget
Particulars
Quarter
Six Months
1
2
Expected Unit Sales
28600
43400
Add: Desired Closing Inventory
12300
18300
Total Finished Goods Required
40900
61700
Less: Opening Inventory
8400
12300
Units to be Produced
32500
49400
81900
Important Note:
In Production Budget, Opening Inventory of next month is closing inventory of earlier month so this need to be produced in earlier month.
Cook Farm Supply Company
Sales Budget
Particulars
Quarter
Six Months
1
2
Expected Unit Sales
28600
43400
72000
Unit Selling Price
62
62
62
Total Sales
1773200
2690800
4464000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.