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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

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 1-29,200 bags quarter 2- 43,200 bags. Selling price is $61 per bag. 2 direct material: each bag of snare requires 5 pounds of gumm at a cost of $3.80 per pound and 6 pounds of tarr at $1.50 per pound. 3. Desires inventory levels Type of inventory Jan1 April1 July1 Snare(bags) 8,400 12,200 18,200 Gumm (pounds). 9,200 10,200. 13,500 Tarr (pounds). 14,300 20,400 25,400 4. Direct labor:direct labor times 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 $180,000 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 $301,000 in quarter 1 and $425,500 in quarter 2. DO NOT PREPARE THE MANUFACTURING OVERHEAD BUDGET OR THE DIRECT MATERIALS BUDGET FOR TARR. Prepare the sales budget fill in the blank Q1 Q2 6mnths Expected unit sales ______ ______ ________ Unit selling price ______ ______ _______ Total sales ______ ______ _______

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