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 2017. 1. Sales: quarter 1, 40,000 bags; quarter 2, 56,000 bags. Selling price is $60 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.5 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,000 15,000 18,000 Gumm (pounds) 9,000 10,000 13,000 Tarr (pounds) 14,000 20,000 25,000 4. Direct 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 $175,000 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 Tarr purchases to be $297,000 in quarter 1 and $439,500 in quarter 2. (a) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget For the Quarter Ending June 30, 2017June 30, 2017For the Six Months Ending June 30, 2017 Quarter Six Months 1 2 Expected unit sales Unit selling price $ $ $ Total sales $ $ $ Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget June 30, 2017For the Quarter Ending June 30, 2017For the Six Months Ending June 30, 2017 Quarter Six Months 1 2 Total Cost of Direct Materials PurchasesDirect Labor Time per UnitTotal Direct Labor CostTotal Required UnitsBeginning Direct MaterialsDirect Materials per UnitTotal Materials RequiredTotal Pounds Needed for ProductionDirect Labor Cost per HourBeginning Finished Goods UnitsDesired Ending Finished Goods UnitsDesired Ending Direct MaterialsTotal Required Direct Labor HoursCost per PoundDirect Materials PurchasesExpected Unit SalesRequired Production Units AddLess: Total Required UnitsDirect Labor Time per UnitCost per PoundBeginning Direct MaterialsRequired Production UnitsDesired Ending Finished Goods UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Direct Labor CostExpected Unit SalesTotal Pounds Needed for ProductionDesired Ending Direct MaterialsTotal Required Direct Labor HoursDirect Labor Cost per HourDirect Materials per UnitDirect Materials PurchasesBeginning Finished Goods Units Direct Labor Time per UnitDesired Ending Direct MaterialsTotal Materials RequiredDirect Materials PurchasesDesired Ending Finished Goods UnitsDirect Materials per UnitTotal Cost of Direct Materials PurchasesBeginning Finished Goods UnitsExpected Unit SalesDirect Labor Cost per HourRequired Production UnitsTotal Direct Labor CostTotal Pounds Needed for ProductionTotal Required Direct Labor HoursCost per PoundTotal Required UnitsBeginning Direct Materials AddLess: Direct Labor Time per UnitTotal Pounds Needed for ProductionTotal Required UnitsTotal Required Direct Labor HoursBeginning Direct MaterialsDirect Labor Cost per HourCost per PoundBeginning Finished Goods UnitsDirect Materials per UnitDirect Materials PurchasesExpected Unit SalesDesired Ending Direct MaterialsTotal Direct Labor CostDesired Ending Finished Goods UnitsRequired Production UnitsTotal Cost of Direct Materials PurchasesTotal Materials Required Direct Materials PurchasesTotal Materials RequiredDirect Labor Time per UnitExpected Unit SalesDirect Labor Cost per HourDirect Materials per UnitTotal Pounds Needed for ProductionRequired Production UnitsTotal Direct Labor CostTotal Required Direct Labor HoursTotal Required UnitsTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods UnitsBeginning Direct MaterialsBeginning Finished Goods UnitsCost per PoundDesired Ending Direct Materials