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, 29,800 bags; quarter 2,43,800 bags. Selling price is $63 per bag. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at $1.75 per pound Desired inventory levels: 3. July 1 Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8,200 9.500 April 1 12.100 10.100 20,300 18,500 13,200 25,200 14,100 4. 5. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $180,000 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 $298,000 in quarter 1 and $423,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prepare the sales budget. COOK FARM SUPPLY COMPANY Sales Budget V Quarter Six Months 1 2 $ $ $ $ $ $ Prepare the production budget. Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget June 30, 2020 Quarter Six Months 1 2