Watch Free Sports I Apps + Facebook-Login Question 1 of 4 > 12.5 !!! 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 2020. 1. 2. Sales: quarter 1, 28,000 bags:quarter 2,43,400 bags. Selling price is 563 per bag Direct materials: each bag of Snare requires 4 pounds of Gurm at a cost of 53.80 per pound and 6 pounds of Tarrat $1.50 per pound. Desired inventory levels 3. Type of Inventory Snare (bags Gumm (pounds) Tarr (pounds) January 1 8,400 9.500 14.500 April 1 12.500 10.300 20,100 July 1 18.400 13,400 25,100 5. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of S16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $177.000 per quarter. Interest expense is $100,000, Income taxes are expected to be 30% of income before income taxes. 6. 7. 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 5424.500 in quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) 12.5 !!! Prepare the sales budget COOK FARM SUPPLY COMPANY Sales Budget Quarter 1 2 Six Months $ $ $ $ $ $ Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter 1 2