Problem 22-01A 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 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: July 1 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8,300 9,300 14,300 April 1 12,400 10,500 20,400 18,100 13,300 25,400 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 $178,000 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 $300,000 in quarter 1 and $426,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget Quarter Six Months 1 2 $ $ $ Prepare the production budget. Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter Six Months 1 2 LINK TO VIDEO TNK TO TEXT Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. CES 5 COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter Six Months 2 1 tudy . $ $ the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the pra