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, 29,400 bags: quarter 2,44,000 bags. Selling price is $61 per bag. Direct materials: each bag of Snfe requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarrat $1.75 per pound Desired inventory levels: 3 April 1 July 1 18,500 12,300 Type of Inventory January 1 Snare (bags) 8,500 Gumm (pounds) 9.400 Tarr (pounds) 14,400 10,200 13,100 20,500 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 $180,000 per quarter. Interest expense is $100,000 Income taxes are expected to be 30% of income before income taxes 6. 7. Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to O decimal places, eg. 1.255.) COOK FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Endine June 30, 2020 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, 29,400 bags: quarter 2,44,000 bags. Selling price is $61 per bag. Direct materials: each bag of Snfe requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarrat $1.75 per pound Desired inventory levels: 3 April 1 July 1 18,500 12,300 Type of Inventory January 1 Snare (bags) 8,500 Gumm (pounds) 9.400 Tarr (pounds) 14,400 10,200 13,100 20,500 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 $180,000 per quarter. Interest expense is $100,000 Income taxes are expected to be 30% of income before income taxes 6. 7. Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to O decimal places, eg. 1.255.) COOK FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Endine June 30, 2020