Problem 23-1A 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 . Sales: quarter 1, 29,400 bags; quarter 2, 42,500 bags. Selling price is $63 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of 3.8 per pound and 6 pounds of Tarr at 3. Desired inventory levels 1.75 per pound. of In Snare (bags) Gumm (pounds) Tarr (pounds) 8,100 9,500 14,200 12,200 18,100 0,10013,200 25,400 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 $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 to 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 301,000 n 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 Six Month:s Expected unit sales Unit selling price Total sales Prepare the production budget COOK FARM SUPPLY COMPANY Production Budget Six Month:s 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 Months 2 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 Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget Six 2 Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to 0 decimal places, e.g. 1,255. COOK FARM SUPPLY COMPANY Budgeted Income Statement