**Just need help with the ones in red got those wrong, thank you**

Problem 21-1A 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, 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 $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: July 1 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8,300 9,300 14,300 April 1 12,400 10,500 20,400 18,100 13,300 25,400 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 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. Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2017 , Quarter Six Months Expected unit sales 9800 42400 72,200 Unit selling price Total sales 1847600 628800 4,476,400 Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2017 – Quarter Six Months Expected Unit Sales 298 42400 Add Desired Ending Finished Goods Units 124 18100 Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2017 4 Quarter 2 Six Months Expected Unit Sales 29800 42400 18100 y Add Desired Ending Finished Goods Units A Total Required Units ņ T 12400 42200 T 60500 T Less IT Beginning Finished Goods Units 8300 12400 Required Production Units Required Production Units 33900 33900 48100 82000 LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM COOK FARM SUPPLY COMPANY Direct Materials Budget Gumm For the Six Months Ending June 30, 2017 Quarter Six Months Units to be produced 33900 48100 Direct Materials per Unit Total Pounds Needed for Production 135600 192400 Add Desired Ending Direct Materials 10500 13300 Total Materials Required 146100 205700 Less .Beginning Direct Materials 9300 10500 Direct Materials Purchases 136800 195200 Cost per Pound Cost per Pound 3.80 3.80 Total Cost of Direct Materials Purchases 519840 41760 1261600 Duananatha dicant labarb.deat exi ti-Leuc iti Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the COOK FARM SUPPLY COMPANY Direct Labor Budget For the Six Months Ending June 30, 2017 – Quarter Six Months Units to be produced 3900 48100 Direct Labor Time per Unit .25 Total Required Direct Labor Hours 8475 12025 Direct Labor Cost per Hour Total Direct Labor Cost 18650 168350 287000 Prepare the selling and administrative expense budget. Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2017 A Quarter Six Months Budgeted sales in units | 29800 42400 72200 Variable Cost 140 394320 671460 Fixed Cost 178000 178000 356000 Total 455140 572320 1027460 COOK FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2017 A Sales 4476400 Cost of Goods Sold 2315815 Gross Profit T 2160585 Selling and Administrative Expenses 4 1027460 Income from Operations 1133125 Interest Expense 100000 Income Before Income Tax 1033125 T Income Tax Expense 309937.5 | Net Income / (Loss) 723188

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