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Home rsert Page Layout Formulas Dats Review View PROTECTED VEW A1XSP23-IA Prepare budgeted income statement and supporting budgets Be caredul-files from the Intrnet can contain vinuses Unless you need to edt, it's safer to stay in Protected View.Enable Editing stafement and supporting budgels P23 1A of 2017 Cook Fam Supply Company manufactures and sels a pesticide called Snare. The following Snare for the first 2 budgets for data are avalable for preparing 1. Sales quarter 1, 40,000 bags, quarter 2, 56,000 bags Seling price is $60 per bag 2 Dired materials each bag of Snare requres 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tamr at $1.50 per pound 73. Desired inventory levels Tvce o Inventory Snare (bags) Gumm (pounds) Tamr pounds) January 1 April 1 Juy1 8,000 15,000 18,000 9,000 10,000 13,000 14,000 20,000 25,000 4 Dredt abor diredt labor time is 15 minutes per bag at an hourly rate of $16 per hour 5 Seing and admenstrate expenses are expected to be 15% of sales plus S1 75.000 per quarter s & nterest Expense is $100,000 T. Income t ases ar e expected to be 30% of income before income taxes. Your assistant has prepared two budgets (1) The manfacturing overhead budget shows expected cost sto be 125% d dred labor cost, and O)The direct maenas budget for Tarr shows the cost of Tarr 2o purchases to be $207,000 in quarter 1 and $439,500 in quarter 2 Prepare the butgeted mut-step income statement for the frst 6 months and all required operating budgets by quaners (Note Use variable and foxed in the selling and administrative expense budget) Do not prepare the mandfacharing ovesthead budget or the direct materials budget for Tarr a number in celis requesting a value; enter either a number or a formula in cells with a "?" COOK FARM SUPPLY COMPANY Saies Budget Expecod unt sales Unt seling price Sex COOK FARM SUPPLY COMPANY Production Budget Review View TEAM e Home lsert Page Layout Formulies Dat 0 PROTICTHD VIEw Beca-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View P23-1A Prepare budgeted income statement and supporting budgets. COOK FARM SUPPLY COMPANY Production Budget Quarter 1Six Moths Value Vakue as Expected unt sales s Ads Desired ending finished goods untsValuea Total required unvts s Less. Begineing finished goods units Value Required production unts COOK FARM SUPPLY COMPANY Direct Matenals Budget-Gunm Six Months Quarter Units to be produced Direct materials per unvt (bs) Total pounds needed for production Value|Value Add Desired ending direct materials (bsVaue Value Total materials required Less Beginning drect materias(s) Va Direct materials parchases Cost per pound otal cost of direct materials purchases COOK FARM SUPPLY COMPANY Drect Labor Budget Unts to be produced Dinect labor hours per unit otal requred diect labor hours Direct labor cost per hour Totai dieect labor cos Value HP Compon LE2202 Tell me what you want to do.. TEAM En the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. P23-1A Prepare budgeted View Review Data Formulas Page Layout Fle Home Inset PROTECTED VIEW Be careful-files from ted income statement and supporting budgets. budge Six Quarter Value Value Value Value For the Six Months Ending June 30, 2017 2 Months s Budgeted sales in units Variable (15x sales) 88 Fixed 9 Total Value Value COOK FARM SUPPLY COMPANY Budgeted Income Statement s Sales revenue e Cost of goods sold 7 Gross Profit se Selling and administrative expenses n Income from operations o Interest expense o Income before income tax Value 2 Income tax expense (30%) 03 Net income Costper Bag Cost Element s Direct Materials Quantity Unit Cost Total Gumm Direct Labor Manufacturing overhead 4 pounds Value 6 pounds Value 1/4 hour Value (125% of direct labor cost) otal o Ater you have completed P9-1A consider the following additional question Assume that the expected unit sales in Quarter 1 changed to 36,000 bags of Snare. Also assume that the amount of direct matenal (Gumm) used changed to 5 pounds per bag, and, that the direct labor rate per bas of S Editing PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View | || P23-1A prepare budgeted income statement and supporting budgets. v' G H 119 After you have completed P9-1A consider the following additional question. 1201. Assume that the expected unit sales in Quarter 1 changed to 36,000 bags of Snare. Also assume that 121 the amount of direct material (Gumm) used changed to 5 pounds per bag, and, that the direct labor rate 122 changed to $18 per hour. Revise the budgets and budgeted income statement to reflect these changes 125 48

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