P24-1A - Quarter 1 2 Six months Units to be produced 45,000...

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Homework # 11 P24-1A Farm Supply Company Sales budget Quarter 1 2 Six months Expected units sales 40,000 55,000 95,000 Unit selling price ($) 60 60 60 Total sales 2400000 3300000 5700000 Farm Supply Company Production budget Quarter 1 2 Six months Expected unit sales 40,000 55,000 95,000 Add: Desired ending finished goods units 15,000 20,000 20,000 Total required units 55000 75000 115000 Less: Beginning finished goods units 10,000 15,000 10,000 Required production units 45000 60000 105000 Farm Supply Company Direct materials budget Quarter 1 2 Six months Units to be produced 45,000 60,000 105,000 Direct materials per unit 6 6 6 Total pounds needed for production 270000 360000 630000 Add: Desired ending direct materials (pounds) 12,000 15,000 15,000 Total materials required 282000 375000 645000 Less: Beginning direct materials (pounds) 9,000 12,000 9,000 Direct materials purchases 273000 363000 636000 Cost per pound 3 3 3 Total cost of direct materials purchases 819000 1089000 1908000 Farm Supply Company Direct labor budget
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Unformatted text preview: Quarter 1 2 Six months Units to be produced 45,000 60,000 105,000 Direct labor time (hours) per unit 0.25 0.25 0.25 Total required direct labor hours 11250 15000 26250 Direct labor cost per hour 12 12 12 Total direct labor cost 135000 180000 315000 Farm Supply Company Selling and administrative expense budget Quarter 1 2 Six months Variable expenses 240,000 330,000 570,000 Fixed expenses 150,000 150,000 300,000 Total expenses 390000 480000 870000 Cost of one bag Cost element Quantity Unit cost Total Direct materials Crup 6 3 18 Dert 10 1.5 15 Direct labor 0.25 12 3 Manufacturing overhead 3 Total unit cost 39 Farm Supply Company Budgeted income statement Sales 5,700,000 Cost of goods sold 3,705,000 Gross profit 1,995,000 Selling and administrative 870,000 Income from operations 1,125,000 Income tax expense 337,500 Net income 787500...
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P24-1A - Quarter 1 2 Six months Units to be produced 45,000...

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