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 $2022.$

Sales: quarter $1,40,000$ bags; quarter $2,56,000$ bags. Selling price is $$60$ per bag.

Direct materials: each bag of Snare requires $4$ pounds of Gumm at a cost of $$3\mathrm{.}8$ per pound and $6$ pounds of Tarr at $$1\mathrm{.}50$ per pound.

Desired inventory levels:

$\backslash$table$[[$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$),14,000,20,000,25,000,]]$

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 $$175,000$ per quarter.

Interest expense is $$100,000.$

Income taxes are expected to be $20\%$ 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 $2.$

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

$($a$)$

Prepare the sales budget.

COOK FARM SUPPLY COMPANY

Sales Budget

Quarter

$1$

$2$

$-$prepare the production budget

B$)$ prepare the direct materials budget $($round cost per pound answeres to $2$ decimal places$)$

$-$ prepare the direct labor budget $($enter direct labor time per unit in proportionto hours, e$.$g$.$ for $45$ minutes the proportion will be $0\mathrm{.}75.)$

$-$prepare the selling and administrative expense budget

C$)$ prepare the budgeted multiple$-$step income statement for the first $6$ months. $($Round intermediate calculations to $2$ decimal places and final answer to $0$ decimal places.$)$