COOK FARM SUPPLY COMPANYSelling and Administrative Expense BudgetQuarterSixMonths2.Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calcuCOOK FARM SUPPLY COMPANYBudgeted Income Statement> >> > > 05:39 PM / Remaining:46 min.CALCULATORPRINTER VERSION1 BACKNEXTProblem 22-01ACook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare forthe first 2 quarters of 2020.1. Sales: quarter 1, 28,200 bags; quarter 2, 42,400 bags. Selling price is $63 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 $1.75 per pound.3. Desired inventory levels:Type of InventoryJanuary 1April 1July 1Snare (bags)8,20012,20018,100Gumm (pounds)9,10010,40013,300Tarr (pounds)14,50020,40025,2004. 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 $180,000 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 $301,000 in quarter 1 and $422,500 in quarter 2.(Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)Prepare the sales budget.MacBook Air

Budget Income statement: This income statement shows how much profit or loss this future will give…

COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter Six Months 1. 2. Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calcu COOK FARM SUPPLY COMPANY Budgeted Income Statement

COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter Six Months 1. 2. Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calcu COOK FARM SUPPLY COMPANY Budgeted Income Statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: 6. Question Content Area Administrative Expense Budget Green Earth Landscaping Company provides…

A: Budget means the expected value for future. Administrative expenses means the expenses incurred in…

Q: ACG3073-WEEK 12-CHAPTER ASSIGNMENT ABC Company is preparing its master budget for the first quarter…

A: Lets understand the basics. Management prepare various type of budgets like sales budget, production…

Q: Prepare a schedule of cash payments for operations for January February, and March.

A: The cash collection schedule is prepared to estimate the requirements for the period.The cash…

Q: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (g) 100 Revenue…

A: Budgets are made to estimate the incomes and expenses during a particular period. Flexible budget is…

Q: RED ROSE COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2023…

A: A flexible budget is a kind of a budget that can be changed multiple times if the revenue or…

Q: Forecast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget…

A: Solution 1 Unit Sales,Year Ended 20Y8 Increase (Decrease)Actual Over Budget…

Q: EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter…

Q: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to…

A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…

Q: Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to…

A: Budgets are the forecasts or estimates that are made for future period of time. These helps in…

Q: The budgeted indirect cost rate is calculated Select one : OA at the end of the year OB at the end…

A: The budgeted indirect cost rate refers to the rate used to allocate the overheads of the business to…

Q: Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours…

A: Overhead Budget is prepared to forecast and present all the expected costs concerning the…

Q: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout Southeast…

A: Production budget is budget which estimates the number of units which the company must produce or…

Q: The budget director for Baird Cleaning Services prepared the following list of expected selling and…

A: Salary Payable -Salary Payable is the amount incurred but remains unpaid. These shall be recorded in…

Q: Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash…

Q: Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours…

A: The overhead budget is prepared to compute the total budgeted overhead or costs incurred in…

Q: Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most…

A: The budget is prepared to estimate the requirements for the future period. The production budget…

Q: Administrative Expense Budget Green Earth Landscaping Company provides monthly and weekly…

A: Since the administrative cost is fixed cost and thus it will remain same in all months.

Q: Production budget. Budgeted sales units Add: Desired ending inventory Next period budgeted sales…

A: Production budget is one of the important budget of the business. It shows how much units needs to…

Q: Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of…

A: Trail Balance DebitCreditCash 535,300 Accounts Receivable 190,400 Finished Goods…

Q: 2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the year…

Q: Hillyard Company, an office supplies specialty store, gathered the following information to prepare…

A: Budgeting is the process of estimating future operations based on past performance. % are estimated…

Q: Forecast sales volume and sales budget For 20Y8, Raphael Frame Company prepared the sales budget…

A: We'll create a table to show the budgeted and actual unit sales for each frame size and area, along…

Q: 32,300 Materials 48,900 Prepaid Expenses 2,600 Hant and Equipment 325,000 ccumulated…

A: Budgeted income statement is defined as the report which contains the list of the estimated…

Q: Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the…

A: Prepare a sales budget for March.

Q: Monthly Sales Info: January (actual) February (actual) March (actual) April May 8 June 19 July 10…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: Puget Sound Divers provides diving services, such as underwater ship repairs, to its clients. The…

A: Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Q: Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most…

A: Dear student, please find the answer to your question in the explanation box below. I hope this is…

Q: Deleon Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting…

A: The base for preparing the Direct materials purchase budget is the production budget. The Direct…

Q: EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter…

A: Cash payments are those which are paid in the form of cash. Cash payment by any entity could be made…

Q: Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the…

A: As per authoring guidelines the first three sub-parts of question is answered. Please re-post the…

Q: Champ Incorporated budgets the following sales in units for the coming two months. Each month's en…

A: Budget is an estimate of expected revenue and expenses for the future period.

Q: Budgeted Income Statement and Balance Sheet As a preliminary to requesting budget estimates of…

A: Part 1:

Q: Preparing an Accounts Payable Schedule Wight Inc. purchases raw materials on account for use in…

A: Given Information: Payment made in the month of billing - 25% Payment made in next month - 75%

Q: Administrative Expense Budget Green Earth Landscaping Company provides monthly and weekly…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: 1. Prepare a sales budget for August. Newport Inc. Sales Budget For the First Quarter Ending August…

A: A budget is a part of internal management where forecasted statements are prepared on the basis of…

Q: Input Data (USD) Budgeted sales April (units) May (units) June (units) July (units) August (units)…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate…

A: The budget is a guide for the company to avoid uncertainty and risk to the business. The budget…

Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

COOK FARM SUPPLY COMPANY
Selling and Administrative Expense Budget
Quarter
Six
Months
2.
Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calcu
COOK FARM SUPPLY COMPANY
Budgeted Income Statement
> >
> > >

05:39 PM / Remaining:
46 min.
CALCULATOR
PRINTER VERSION
1 BACK
NEXT
Problem 22-01A
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, 28,200 bags; quarter 2, 42,400 bags. Selling price is $63 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 $1.75 per pound.
3. Desired inventory levels:
Type of Inventory
January 1
April 1
July 1
Snare (bags)
8,200
12,200
18,100
Gumm (pounds)
9,100
10,400
13,300
Tarr (pounds)
14,500
20,400
25,200
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 $180,000 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 $301,000 in quarter 1 and $422,500 in quarter 2.
(Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)
Prepare the sales budget.
MacBook Air

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 1. Sales Budget of Cook Farm Supply Company

VIEW

Step 3 2. Selling and administrative expenses Budget of Cook Farm Supply Company

VIEW

Step 4 3. Budgeted income statement of Cook Farm Supply Company

VIEW

Step 5 3. Answer

VIEW

Step 6 Working note

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 6 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

4. Prepare a direct labor cost budget for August. Newport Inc. Direct Labor Cost Budget For the First Quarter Ending August 31 June July August First Quarter hr. hr. hr. hr. hrs. hrs. hrs. hrs. X$ X$ X$ 5. Prepare a factory overhead cost budget for August. Newport Inc. Factory Overhead Cost Budget For the First Quarter Ending August 31 June July August First Quarter Variable factory overhead: hrs. hrs. hrs. hrs. X$ X$ X$ X$ Fixed factory overhead: Total factory overhead cost
Lens Junction sells lenses for $43 each and is estimating sales of 15,000 units in January and 19,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $14 per hour. Desired inventory levels are: Jan. 31 Feb. 28 Mar. 31 Beginning inventory Finished goods 4,300 4,900 4,900 Direct materials: silicon 8,400 9,100 9,300 Direct materials: solution 11,000 11,800 12,900
The management of Zigby Manufacturing prepared the following balance sheet for March 31. Assets ZIGBY MANUFACTURING Balance Sheet March 31 Liabilities and Equity Cash Accounts receivable Raw materials inventory Finished goods inventory Equipment Less: Accumulated depreciation $ 1,680,000 420,000 Total assets $ 112,000 964,320 275,800 Liabilities Accounts payable Loan payable 911,512 Long-term note payable Equity 1,260,000 Common stock Retained earnings $ 3,523,632 Total liabilities and equity To prepare a master budget for April, May, and June, management gathers the following information. $ 562,800 12,000 1,400,000 938,000 610,832 $ 1,974,800 1,548,832 $ 3,523,632 a. Sales for March total 57,400 units. Budgeted sales in units follow: April, 57,400; May, 54,600; June, 56,000; and July, 57,400. The product's selling price is $24.00 per unit and its total product cost is $19.85 per unit. b. Raw materials inventory consists solely of direct materials that cost $20 per pound. Company…
Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June
Symphony Electronics produces wireless speakers for outdoor use on patios, decks, etc. Their most popular model is the All Weather and requires four separate XL12 components per unit. The company is now planning raw material needs for the second quarter. Sales of the All Weather are the highest in the second quarter of each year as customers prepare for the summer season. The company has the following inventory requirements: a. The finished goods inventory on hand at the end of each month must be equal to 16,400 units plus 10% of the next month's sales. The finished goods inventory on March 31 is budgeted to be 28,700 units. b. The raw materials inventory on hand at the end of each month must be equal to 20% of the following month's production needs for raw materials. The raw materials inventory on March 31 for XL 12 is budgeted to be 98,800 components. c. The company maintains no work in process inventories. A sales budget for the All Weather speaker is as follows: April May June July…
provide the followinf inforamtion to help prepare the master budget for the next four months of opration Could you solve ( D , E , F and G ) only thanks
Accounting Consider the following third-quarter budget data for TAP & Brothers: TAP & Brothers Third-Quarter Budget Data July August September Credit Sales 256,167 262,962 282,872 Credit Purchases 97,465 111,565 137,292 Wages, Taxes, and Expenses 26,506 31,621 33,707 Interest 7,239 7,773 8,091 Equipment Purchases 54,832 61,271 0 The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase. In June, credit sales were $138,282, and credit purchases were $102,770 July’s beginning cash is $184,797 If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of…
Perez Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Perez expects sales in January year 1 to total $210,000 and to increase 20 percent per month in February and March. All sales are on account. Perez expects to collect 68 percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 8 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1. Determine the amount of sales revenue Perez will report on the year 1 first quarterly pro forma income statement. Prepare a cash receipts schedule for the first quarter of year 1. Determine the amount of accounts receivable as of March 31, year 1. Complete this question by entering your answers in the tabs below. Prepare a sales budget for the first quarter of year 1.
Schedule of cash payments for a service company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $26,200. The budgeted expenses for the next three months are as follows: January February March Salaries $60,300 $73,400 $81,200 Utilities 5,000 5,500 6,600 Other operating expenses 46,400 50,600 $5,700 Total $111,700 $129,500 $143,500 Other operating expenses include $3,300 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previous year of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. EastGate Physical Therapy Inc. Schedule of Cash Payments for…
Preparing an Overhead Budget Patrick Inc. makes industrial solvents. Budgeted direct labor hours for the first 3 months of the coming year are: January 13,140 February 12,300 March 15,075 The variable overhead rate is $0.60 per direct labor hour. Fixed overhead is budgeted at $2,580 per month. Required: Prepare an overhead budget for the months of January, February, and March, as well as the total for the first quarter. Do not include a multiplication symbol as part of your answer. Round total variable overhead and total overhead to the nearest dollar. Patrick Inc. Overhead Budget For the Coming First Quarter Overhead: January February March Total Total direct labor hrs Variable overhead rate Total variable overhead $4 Add: Fixed overhead Total overhead