View Policies Current Attempt in Progress 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 1.29,800 bags, quarter 2,43,700 bags. Selling price is $63 per bag. 2. Direct materials: each bag of Snare require 4 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 Snare (bag) Gumm (pounds) Tarr (pounds) January 1 April 1 July 1 8.200 12,100 18,500 9.500 10,100 13,200 14,100 20,300 25.200 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 $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 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 $298.000 in quarter 1 and $423.500 in quarter 2 Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget Quarter Six Months Expected unit sales Unit selling price Total sales Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter Six 2 Months