CALCULATOR PRINTER VERSIO Problem 9-1A (Video) 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, 28,600 bags: quarter 2, 42,600 bags. Selling price is $6 per bag 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarrat $1.75 per pound 3. Desired inventory levels Type of Inventory January 1 April July 1 Snare (bag) 8,200 12,100 18,500 Cume (pounds) 9,400 10,300 13.400 Tarr (pounds) 14,500 20,100 25,500 4. Drect 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 5176,000 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 purchases to be $300,000 in quarter I and $422,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct material budget for Tarr.) LUUN LANJUTFLI LUPIT RIO Sales Budget Quarter 1 2 Six Months $ $ $ Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter 1 2 Six Months Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter Six Months 2