(a) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget Quarter Six Months 1 2 $ $ $ $ $ Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter 1 2 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. 2. Sales: quarter 1, 28,600 bags; quarter 2, 42,600 bags. Selling price is $62 per bag. 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 $1.50 per pound. Desired inventory levels: 3. Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8,100 9,100 14,300 April 1 12,400 10,300 20,300 July 1 18,500 13,200 25,500 4. 5. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $177,000 per quarter. Interest expense is $100,000. Income taxes are expected to be 30% of income before income taxes. 6. 7. Your assist has prepared two budgets: (1) the manufacturing overhead budget shows expected to be 125% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $299,000 in quarter 1 and $425,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)