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 1,29,800bags; quarter 2,42,400bags. Selling price is $62per bag.

2.Direct materials: each bag of Snare requires5pounds of Gumm at a cost of $3.80per pound and6pounds of Tarr at $1.50per pound.

3.Desired inventory levels:

Type of Inventory January 1 April 1 July 1

Snare (bags) 8,100 12,100 18,100

Gumm (pounds) 9,500 10,300 13,100

Tarr (pounds) 14,100 20,100 25,200

4.Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16per hour.

5.Selling and administrative expenses are expected to be 15% of sales plus $179,000per 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 $303,000in quarter 1 and $422,500in quarter 2.

(Note:Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)

please create a sales budget, a production budget, a direct materials budget (Gumm) ((Round Cost per pound answers to 2 decimal places, e.g. 52.70.), a direct labor budget ((Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.), a selling and administrative expense budget, and a budgeted income statement ((Round intermediate calculations to 2 decimal places and final answer to 0 decimal places, e.g. 1,255.)