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, 43,200 bags. Selling price is $61 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 Tarr at $1.50 per pound. Desired inventory levels: 3. Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8,400 9,200 14,300 April 1 12.200 10.200 20,400 July 1 18.200 13,500 25,400 4. 5. 6. 7. 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 $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 $301,000 in quarter 1 and $425,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2020 Quarter 1 2 Six Months Expected Unit Sales 29200 43200 72400 Unit Selling Price $ 61 $ 61 $ 61 Total Sales $ 1781200 $ 2635200 $ 4416400 Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Endine June 30.2020 Quarter Expected Unit Sales Add Desired Ending Finished Goods Units V e Textbook and Media Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, eg. 52.70.) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter > $