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 1,29,500 bags; quarter 2,43,900 bags. Selling price is $63 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.75 per pound 3. Desired inventory levels: Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 July 1 April 1 8,200 12,300 18,100 9,300 10,100 13,300 14,300 20,300 25,200 4. 5. 6. 7. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 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. 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 $300,000 in quarter 1 and $423,500 in quarter 2 Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget For the Quarter Ending June 30, 2017 Quarter Six Months 2 Expected unit sales Unit selling price Total sales Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter Six SIX 2 Months