Problem 21-1A Cook Farm Supply Company manufactures and sells a pestidide caled Snare. The folowing data are available for preparing budgets for Snare for the first 2 quarters of 2017, 1. Sales: quarter 1, 40,000 bags; quarter 2, 56,000 bags. Selling price is $60 per bag 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and & pounds of Tarr at $1.5S per pound. 3. Desired inventory levels Type of anuary April Snare (bags) Gumm (pounds) Terr (pounds) 1 Juy1 8,000 15,000 18,000 9,000 10,000 13,000 14,000 20,000 25,000 4. Direct labor: direct labor time is 15 minutes per bag at an hourty rato of $16 per hour S. Selling and administrative expenses are expected to be 1S% of sales plus $175,000 per quarter. 6. Interest expense is $100,000, 7. Income taxes arc cxpected 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 fo Tar sho s the cost of Tarr purchases to be 297,000 in quarter 1 and $439,500 in quarter 2 Prepare the seles budget. COOK FARM SUPPLY COMPANY Sales Dudget QuarterSix Months Expected unit sales Unit selling price s Total sales Prepare the production budget COOK FARM SUPPLY COMPANY Budget Six Month COK FARM SUPPLY COMPANY Direct Materials Budget Gumm Six Months Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.) COOK FARM SUPPLY COMPANY Direct Labor Budget Quarter Six Months 2 Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter Six Months