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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, 28,600 bags; quarter 2, 42,800 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 $1.50 per pound.
3.		Desired inventory levels:

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

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 $303,000 in quarter 1 and $423,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)

(a)

Prepare the sales budget.

COOK FARM SUPPLY COMPANY Sales Budget choose the accounting period For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020June 30, 2020
		Quarter				Six Months
		1		2
Expected unit sales		enter a number of units		enter a number of units		enter a number of units
Unit selling price		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Total sales		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount

Prepare the production budget.

COOK FARM SUPPLY COMPANY Production Budget choose the accounting period For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020June 30, 2020
		Quarter				Six Months
		1		2
select an opening production budget item Expected Unit SalesTotal Required Direct Labor HoursTotal Direct Labor CostTotal Materials RequiredDesired Ending Finished Goods UnitsDirect Labor Time per UnitDirect Materials per UnitDirect Materials PurchasesRequired Production UnitsBeginning Direct MaterialsBeginning Finished Goods UnitsTotal Pounds Needed for ProductionTotal Required UnitsTotal Cost of Direct Materials PurchasesCost per PoundDesired Ending Direct MaterialsDirect Labor Cost per Hour		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Desired Ending Direct MaterialsBeginning Finished Goods UnitsTotal Required Direct Labor HoursBeginning Direct MaterialsTotal Materials RequiredTotal Pounds Needed for ProductionDirect Materials per UnitRequired Production UnitsTotal Required UnitsCost per PoundDirect Materials PurchasesDirect Labor Time per UnitExpected Unit SalesDesired Ending Finished Goods UnitsTotal Direct Labor CostTotal Cost of Direct Materials PurchasesDirect Labor Cost per Hour		enter a number of units		enter a number of units
select a summarizing line for the first part Total Required UnitsTotal Pounds Needed for ProductionBeginning Finished Goods UnitsTotal Direct Labor CostTotal Cost of Direct Materials PurchasesRequired Production UnitsTotal Materials RequiredDirect Materials PurchasesDesired Ending Direct MaterialsDirect Labor Cost per HourCost per PoundTotal Required Direct Labor HoursDirect Labor Time per UnitDesired Ending Finished Goods UnitsDirect Materials per UnitExpected Unit SalesBeginning Direct Materials		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 Direct Labor Cost per HourBeginning Direct MaterialsExpected Unit SalesDirect Labor Time per UnitDirect Materials PurchasesDesired Ending Finished Goods UnitsTotal Required UnitsTotal Materials RequiredRequired Production UnitsTotal Pounds Needed for ProductionBeginning Finished Goods UnitsDirect Materials per UnitTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesCost per PoundDesired Ending Direct MaterialsTotal Direct Labor Cost		enter a number of units		enter a number of units
select a closing production budget item Total Direct Labor CostTotal Pounds Needed for ProductionDirect Materials PurchasesTotal Required Direct Labor HoursBeginning Direct MaterialsDesired Ending Finished Goods UnitsDesired Ending Direct MaterialsDirect Materials per UnitRequired Production UnitsDirect Labor Time per UnitCost per PoundBeginning Finished Goods UnitsTotal Materials RequiredExpected Unit SalesDirect Labor Cost per HourTotal Cost of Direct Materials PurchasesTotal Required Units		enter a total number of units		enter a total number of units		enter a total number of units

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. Sales: quarter 1.28,600 bags: quarter 2, 42,800 bags. Selling price is $61 per bag. 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 Desired inventory levels: 1 2 3. Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8,300 9.100 14,500 April 1 12,300 10,300 20,300 July 1 18,200 13,300 25.400 5. Direct labor direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $177,000 per quarter. Interest expense is $100,000 Income taxes are Jxpected to be 30% of income before income taxes. 6. 7. 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 5423,500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) COOK FARM SUPPLY COMPANY Sales Budget Quarter SEX Months 2 Expected unit sales $ Unit selling price Total sales $ Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter 1 2.

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