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 1,29,200 bags: quarter 2,42,200 bags. Selling price is $63 per bag, Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3,80 per pound and 6 pounds of Tarrat $1.50 per pound. Desired inventory levels: 3. January 1 April 1 July 1 8,200 12,200 18,400 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) 9,300 10,300 13,200 14,500 20,300 25,300 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 $179,000 per quarter. Interest expense is $100,000. Income taxes are expected to be 30% of income before income taxes. 6. 7. (a) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget Quarter Six Months 2 Expected unit sales Unit selling price $ $ $ Total sales $ $ $ Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter 2 > > 12