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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, 28,000 bags; quarter 2, 43,000 bags. Selling price is $61 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 $1.75 per pound.
3.		Desired inventory levels:

Type of Inventory		January 1		April 1		July 1
Snare (bags)		8,100		12,400		18,400
Gumm (pounds)		9,200		10,400		13,500
Tarr (pounds)		14,400		20,300		25,300

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 $177,000 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 $302,000 in quarter 1 and $427,500 in quarter 2.

Prepare the production budget.

COOK FARM SUPPLY COMPANY Production Budget choose the accounting period June 30, 2020For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020
		Quarter				Six Months
		1		2
select an opening production budget item Cost per PoundTotal Pounds Needed for ProductionTotal Required UnitsTotal Required Direct Labor HoursDirect Labor Time per UnitRequired Production UnitsDesired Ending Finished Goods UnitsExpected Unit SalesTotal Direct Labor CostDesired Ending Direct MaterialsDirect Materials PurchasesTotal Cost of Direct Materials PurchasesDirect Labor Cost per HourBeginning Finished Goods UnitsDirect Materials per UnitTotal Materials RequiredBeginning Direct Materials		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Direct Materials PurchasesDesired Ending Finished Goods UnitsTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsDirect Labor Cost per HourTotal Materials RequiredTotal Pounds Needed for ProductionDesired Ending Direct MaterialsExpected Unit SalesCost per PoundRequired Production UnitsBeginning Finished Goods UnitsDirect Labor Time per UnitTotal Required Direct Labor HoursDirect Materials per UnitTotal Direct Labor CostTotal Required Units		enter a number of units		enter a number of units
select a summarizing line for the first part Direct Labor Cost per HourTotal Materials RequiredBeginning Direct MaterialsTotal Pounds Needed for ProductionCost per PoundExpected Unit SalesTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods UnitsDirect Materials PurchasesRequired Production UnitsTotal Required UnitsDirect Materials per UnitDirect Labor Time per UnitDesired Ending Direct MaterialsTotal Direct Labor CostBeginning Finished Goods Units		enter a total number of units for the first part		enter a total number of units for the first part
select between addition and deduction AddLess: select a production budget item Total Cost of Direct Materials PurchasesTotal Required Direct Labor HoursCost per PoundDirect Labor Time per UnitTotal Pounds Needed for ProductionTotal Direct Labor CostDirect Materials PurchasesExpected Unit SalesDesired Ending Finished Goods UnitsDesired Ending Direct MaterialsBeginning Finished Goods UnitsTotal Materials RequiredTotal Required UnitsDirect Materials per UnitBeginning Direct MaterialsDirect Labor Cost per HourRequired Production Units		enter a number of units		enter a number of units
select a closing production budget item Desired Ending Direct MaterialsCost per PoundTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsTotal Pounds Needed for ProductionTotal Direct Labor CostTotal Required UnitsTotal Required Direct Labor HoursDirect Labor Time per UnitBeginning Finished Goods UnitsDirect Materials per UnitExpected Unit SalesDirect Labor Cost per HourDesired Ending Finished Goods UnitsRequired Production UnitsTotal Materials RequiredDirect Materials Purchases		enter a total number of units		enter a total number of units

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