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Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preping for Snare for the first 2 quarters of 2020 1 2 Sales:quarter 1, 29,400 bags:quarter 2, 42,600 bags. Selling price is $63 per bag. Direct materials: each bag of Snare requires 4 pounds of Gummat a cost of $3,80 per pound and 6 pounds of Tarr at $1.75 per pound Desired inventory levels 3 Type of inventory January 1 April 1 July 1 8,100 12,200 Snare (bags) Gumm (pounds) Tarr pounds) 18,100 13,200 9,500 10,100 14200 20,500 25,400 4 5 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 $179,000 per quarter, Interest expense is $100.000, 6 7 Income taxes are expected to be 30% of income before income taxes cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $301,000 in quarter 1 and $426,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) (a) Your answer is correct. 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 29400 42600 72000 $ 63 63 63 Unit Selling Price Total Sales 1,852.200 $ 4.536,000 2,683,800 Prepare the production budget COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter 1 2 Expected Unit Sales 29.400 42.600 Add Desired Ending Finished Goods Units 12200 18,100 Total Required Units 41.600 60,700 Less Beginning Finished Goods Units (8,100) (12,200) i MAR 2220 ALSAD eTextbook and Media Attempts: 3 of 7 used (b) Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, eg: 5270.) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter 1 2 >