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.		Sales: quarter 1, 28,600 bags; quarter 2, 42,800 bags. Selling price is $61 per bag.
2.		Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.50 per pound.
3.		Desired inventory levels:

Type of Inventory		January 1		April 1		July 1
Snare (bags)		8,300		12,300		18,200
Gumm (pounds)		9,100		10,300		13,300
Tarr (pounds)		14,500		20,300		25,400

4.		Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour.
5.		Selling and administrative expenses are expected to be 15% of sales plus $177,000 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 $303,000 in quarter 1 and $423,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)

(a)

Prepare the sales budget.

COOK FARM SUPPLY COMPANY Sales Budget June 30, 2020For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020
		Quarter				Six Months
		1		2
Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price
Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$		$		$
Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$		$		$

Prepare the production budget.

COOK FARM SUPPLY COMPANY Production Budget June 30, 2020For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020
		Quarter				Six Months
		1		2
Total Required UnitsRequired Production UnitsTotal Required Direct Labor HoursTotal Direct Labor CostTotal Cost of Direct Materials PurchasesTotal Materials RequiredDirect Materials per UnitDirect Materials PurchasesTotal Pounds Needed for ProductionDirect Labor Cost per HourDesired Ending Direct MaterialsBeginning Finished Goods UnitsCost per PoundDirect Labor Time per UnitBeginning Direct MaterialsDesired Ending Finished Goods UnitsExpected Unit Sales
AddLess: Total Required UnitsRequired Production UnitsDirect Labor Cost per HourDirect Materials per UnitTotal Cost of Direct Materials PurchasesCost per PoundBeginning Direct MaterialsTotal Direct Labor CostDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsDirect Labor Time per UnitTotal Required Direct Labor HoursBeginning Finished Goods UnitsTotal Pounds Needed for ProductionTotal Materials RequiredDirect Materials PurchasesExpected Unit Sales
Beginning Direct MaterialsTotal Required UnitsDirect Materials PurchasesTotal Materials RequiredTotal Required Direct Labor HoursExpected Unit SalesTotal Direct Labor CostDesired Ending Finished Goods UnitsTotal Cost of Direct Materials PurchasesCost per PoundDirect Materials per UnitTotal Pounds Needed for ProductionBeginning Finished Goods UnitsRequired Production UnitsDirect Labor Time per UnitDirect Labor Cost per HourDesired Ending Direct Materials
AddLess: Direct Materials per UnitTotal Direct Labor CostBeginning Direct MaterialsDirect Labor Cost per HourDirect Labor Time per UnitTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsExpected Unit SalesTotal Pounds Needed for ProductionTotal Required UnitsRequired Production UnitsTotal Materials RequiredBeginning Finished Goods UnitsDirect Materials Purchases
Desired Ending Finished Goods UnitsDirect Labor Time per UnitTotal Materials RequiredTotal Direct Labor CostExpected Unit SalesTotal Required Direct Labor HoursRequired Production UnitsDirect Labor Cost per HourDirect Materials PurchasesBeginning Direct MaterialsTotal Cost of Direct Materials PurchasesDirect Materials per UnitTotal Pounds Needed for ProductionBeginning Finished Goods UnitsTotal Required UnitsDesired Ending Direct MaterialsCost per Pound

Prepare the sales budget COOK FARM SUPPLY COMPANY Sales Budget Quarter Six Months 2 $ $ Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget Quarter 1 2