Can you find the answers to the direct materials budget? Thank you!! The word options...
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Accounting
Can you find the answers to the direct materials budget? Thank you!!
The word options are:
Direct Materials per Unit
Direct Labor Cost per Hour
Expected Unit Sales Units to be Produced
Desired Ending Finished Goods Units
Direct Labor Time (Hours) per Unit
Desired Ending Direct Materials (Pounds)
Beginning Direct Materials (Pounds)
Total Pounds Needed for Production
Total Required Direct Labor Hours
Total Materials Required
Beginning Finished Goods Units
Total Required Units
Direct Materials Purchases
Cost per Pound
Total Cost of Direct Materials Purchases
Total Direct Labor Cost
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 4 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: 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 $178,000 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 $300,000 in quarter 1 and $426,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prenare the direct materials hudget. (Round Cost ner nound answers to 2 derimal nlaces e a 52.70. )
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