Will thumbs up correct answers! thank you!! Cook Farm Supply Company manufacture

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Will thumbs up correct answers! thank you!!

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, 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 S1.50 per pound. Desired inventory levels: 3. January April1 15,000 10,000 20,000 July 18,000 13,000 25,000 1 Snare (bags) Gumm (pounds) Tarr (pounds) 8,000 9,000 14,000 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of S16 per hour 5. Selling and administrative expenses are expected to be 15% of sales plus $175,000 per quarter 6. Interest Expense is $100,000 7. Incom e 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 $297,000 in quarter 1 and $439,500 in quarter 2. Prepare the budgeted multi-step income statement for the first 6 months and all required operating budgets by quarters. (Note: Use variable and fixed in the selling and administrative expense budget.) Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr. NOTE: Enter a number in cells requesting a value enter either a number or a formula in cells with a "?" .

Explanation / Answer

1)

COOK FARM SUPPLY COMPANY

selling and administrative expense

For the six month ending june 30,2017

COOK FARM SUPPLY COMPANY

Income statement

For the six month ending june 30,2017

COOK FARM SUPPLY COMPANY

selling and administrative expense

For the six month ending june 30,2017

Quarter Six month 1 2 Budgeted sales units 40000 56000 96000 variable 360000   [40000*60*.15] 504000    [56000*60*.15] 864000 Fixed 175000 175000 350000 Total 535000 679000 1214000

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