Problem 21-1A (Part Level Submission) 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 2017. 1. Sales: quarter 1, 28,000 bags; quarter 2, 43,000 bags. Selling price is $61 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.75 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 12,400 8,100 18,400 Gumm (pounds) 9,200 10,400 13,500 Tarr (pounds) 14,400 20,300 25,300 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $177,000 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 125% of direct labor cost, and (2) the direct materials budget for Tarr shows the cost of Tarr purchases to be $302,000 in quarter 1 and $427,500 in quarter 2. (a) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget Quarter Six Months Expected unit sales Unit selling price 2$ Total sales $1 $1 Prepare the production budget. Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter Six Months Click if you would like to Show Work for this question: Open Show Work