Danner Farm Supply Company

Input Area:
1st Quarter 2nd Quarter
Sales by Quarter 28,000 43,000
Selling price per Bag $ 63.23
Direct Material Requirement
Each bag of Snare required 4 Lbs. of Gumm @ $ 4.13
7 Lbs of Tarr @ $ 1.78
Desired inventory levels:
Type of Inventory January 1st April 1st
Snare (bags) - Product to be sold 8,400 12,300
Gumm (pounds) - Input to produce bags 9,300 10,400

Direct Labor Time per bag 15 Minutes @ $ 16.22

Factory overhead 145% of direct labor cost
Selling an Administrative expenses Variable Cost 12.4%
Fixed Cost $ 180,000
Income Taxes 39% of income from operations

Danner Farm Supply Company

Sales Budget
For the Six Months Ending June 30, 2017

Quarter
1 2
Expected unit sales - bags 28,000 43,000
Unit selling price $ 63.23 $ 63.23
Total sales $ 1,770,440 $ 2,718,890

Danner Farm Supply Company

Bags Production Budget
For the Six Months Ending June 30, 2017

Quarter
1 2
Expected unit sales - bags 28,000 43,000
Add: Desired ending finished goods units 12,300 18,100
Total required units 40,300 61,100
Less: Beginning finished goods units 8,400 12,300
Required production units 31,900 48,800
 Danner Farm Supply Company
Direct Materials Budget-Gumm
For the Six Months Ending June 30, 2017

Quarter
1 2
Units to be produced 31,900 48,800
Direct materials per unit 4 4
Total pounds needed for production 127,600 195,200
Add: Desired ending direct materials 10,400 13,400
Total materials required 138,000 208,600
Less: Beginning direct materials 9,300 10,400
Direct materials purchases 128,700 198,200
cost per pound $ 4.13 $ 4.13
Total cost of direct materials purchases $ 531,531 $ 818,566

Danner Farm Supply Company

Direct Labor budget
For the Six Months Ending June 30, 2017

Quarter
1 2
Units to be produced 31,900 48,800
Direct labor time (hours) per unit 0.25 0.25
Total required direct labor hours 7,975 12,200
Direct labor cost per hour $ 16.22 $ 16.22
Total direct labor cost $ 129,355 $ 197,884

Danner Farm Supply Company

Selling and Administrative Expense Budget
For the Six Months Ending June 30, 2017

Quarter
1 2
Budgeted sales in units 28,000 43,000

Variable $ 219,535 $ 337,142

Fixed 180,000 180,000
Total $ 399,535 $ 517,142

Danner Farm Supply Company

 Cost of Goods Sold Budget
For the Six Months Ending June 30, 2017

Units sold 71,000

Direct material cost per unit
Lbs. of Gumm @ 4
Cost per pound $ 4.13 $ 16.52
Lbs. of Tarr @ 7
Cost per pound $ 1.78 $ 12.46
Direct material cost per unit $ 28.98
Total direct materials cost
Direct labor per unit $ 4.06
Total direct labor cost
Factory overhead costs
Costs 145%
Total Factory overhead costs
Total cost of goods sold

Danner Farm Supply Company

Budgeted Income Statement
For the Six Months Ending June 30, 2017

Sales
Cost of goods sold
Gross profit
Selling and Administrative expenses
Income from operations
Income tax expense
Net income

Created by Dylan R. Stephenson

4/19/2020 23:13
'file:///conversion/tmp/scratch/471107206.xlsx'#$Sheet1
Financial Statement
June 30, 2017

July 1st
18,100
13,400

per hour

of Sales
per Quarter

Six
Months
71,000
$ 63.23
$ 4,489,330

Six
Months

80,700
 Six
Months

$ 1,350,097

Six
Months

$ 327,239

Six
Months
71,000

$ 556,677
360,000
$ 916,677
$ 2,057,580

288,260

417,977
$ 2,763,817

$ 4,489,330
2,763,817
1,725,513
916,677
808,836
315,446
$ 493,390