Current Attempt in Progress 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, 29,800 bags: quarter 2,42,400 bags. Selling price is $62 per bag 2. 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. 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 $16 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $179.000 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 1 25% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $303,000 in quarter 1 and $422,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) (a) COMPANY Sales Budget For the Six Months Ending June 30, 2020 Quarter 1 2 Six Months Expected Unit Sales 29800 42400 72200 4 Unit Selling Price $ 62 $ 62 $ 62 Total Sales . $ 1847600 $ 2628800 $ 4476400 Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter 1 Six Months 2 Expected Unit Sales 29800 42400 Add : Desired Ending Finished Goods Units . 12.100 18.100 Total Required Units 41900 60500 Less : Beginning Finished Goods Units 8.100 12,100 i Required Production Units 33800 48400 82200 e Textbook and Media Assistance Used Attempts: 1 of 5 used (b) Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm For the Six Months Ending June 30, 2020 Quarter Six Months 1 2 4 e : $ 4) $ $ Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, eg. for 45 minutes the proportion will be 0.75.) COOK FARM SUPPLY COMPANY Direct Labor Budget COOK FARM SUPPLY COMPANY Direct Labor Budget . Quarter Six Months 1 2 . $ $ $ $ Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter Six Months 1 2 . $ $ $ . $ $ $ $ $