RACK Practice Problem 1 Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first quarters of 2020 1. Sales: quarter 1, 29,200 bags: quarter 2, 43,200 bags. Selling price is $61 per bag 2. Direct materials: each bag of Snare requires pounds of Gurm at a cost of $3,80 per pound and 6 pounds of Tur at $1.50 per pound. 3. Desired inventory levels Type of Inventory January 1 April 1 Snare (bag) 8,400 12,200 18,200 Gumm (pounds) 9,200 10,200 13,500 Tare (pounds) 14,300 20,400 25,400 4. Dect labor direct labor time is ts minutes per bag at an hourly rate of $16 per hour 5. Selling and administrative expenses are expected to be 15% of sales plus $180,000 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 but shows expected costs to be 125% of direct labor cost, and (2) the direct mana budget for a shows the cost of a purchases to be $301,000 in quarter 1 and 425,500 in quarter 2. (Note: Do not prepare the manufacturing overhoed budget or the direct materials budget for Vor) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget Quarter 2 Six Months Expected unit sales Unit selling price Total sales Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter 1 2 Six Months Pronart hudant an decimal naces et 52.70 Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.) lem 1 (Video) COOK FARM SUPPLY COMPANY Direct Materials Budget-Gumm 5 by e Quarter 1 2 Six Months > Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, eg, for 45 minutes the proportion will be 0.75.) COOK FARM SUPPLY COMPANY Direct Labor Budget Quarter 2 Six Months Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter 2. Six Months 4 $ > $ Prepare the budgeted multiple-step income statement for the first 6 months. (Hound intermediate cates to decideial parco...) COOK FARM SUPPLY COMPANY Budgeted Income Statement Click if you would like to Show Work for this questioni Open Show Work