Use the following information to prepare: sales, production, direct materials, direct labor, selling and administrative budgets and a multiple step income statement.

23-1A Cook Fam 5upply Company manufactures and sells a pesticide called 5nare. The following data are available for preparing budgets for 5nare for the first 2 quarters of 2017. Salas: n 29,800 ha $62 per 2,400 Direct aterial carh han of S at a cost of $3.8 per pound d 6 pounds of Tal 5 ory lavel Type of Inventory _lanuary April July Gumm (pound 9,500 0,300 3,100 pounds 20,100 25,200 Direct labor ct labor ti per ba rly of $16 per ha expected 54% sales plus $179,000 per quarter. $100,000 expected be 20% of Your assistant has prepared two budgets: (1) the manufacturing overhead Ludget shows expected costs to be 125% of direct labor cost, and (2) the direct materials budget ror Tarr shows the cost of Tam purchases to be $303,000 in quarter 1 and 422,500 in quarter 2. (Note: Do not prepa the cturing overhead bud or the direct materials bud ZYour answer is partially carract. Try again. pare the budget. COOK FARM SUPPLY COMPANY Sales Budget Expected unit sales Unit seling price 13-17500 2028300 1475400 ToLa