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, 29,200 bags; quarter 2, 42,200 bags. Selling price is $63 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 InventoryJanuary 1April 1July 1Snare (bags)8,20012,20018,400Gumm (pounds)9,30010,30013,200Tarr (pounds)14,50020,30025,300 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 $179,000 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 $426,500 in quarter 2.(Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)Prepare the sales budget.COOK FARM SUPPLY COMPANYSales Budgetchoose the accounting period For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020June 30, 2020QuarterSixMonths12Expected unit salesenter a number of unitsenter a number of unitsenter a number of unitsUnit selling price$enter a dollar amount $enter a dollar amount $enter a dollar amount Total sales$enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the production budget. COOK FARM SUPPLY COMPANYProduction Budgetchoose the accounting period For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020QuarterSixMonths12select an opening production budget item Cost per PoundTotal Required Direct Labor HoursRequired Production UnitsExpected Unit SalesDirect Materials PurchasesTotal Pounds Needed for ProductionTotal Materials RequiredDesired Ending Direct MaterialsTotal Direct Labor CostBeginning Direct MaterialsDirect Labor Cost per HourTotal Required UnitsDirect Materials per UnitTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods UnitsDirect Labor Time per UnitBeginning Finished Goods Unitsenter a number of unitsenter a number of unitsselect between addition and deduction AddLess: select a production budget item Beginning Finished Goods UnitsTotal Direct Labor CostDirect Materials per UnitTotal Required UnitsRequired Production UnitsTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsTotal Required Direct Labor HoursDirect Materials PurchasesDesired Ending Direct MaterialsDirect Labor Cost per HourExpected Unit SalesCost per PoundTotal Pounds Needed for ProductionDirect Labor Time per UnitTotal Materials RequiredDesired Ending Finished Goods Unitsenter a number of unitsenter a number of unitsselect a summarizing line for the first part Direct Labor Time per UnitRequired Production UnitsDesired Ending Finished Goods UnitsTotal Materials RequiredBeginning Direct MaterialsBeginning Finished Goods UnitsDirect Materials PurchasesCost per PoundTotal Pounds Needed for ProductionTotal Required UnitsDesired Ending Direct MaterialsDirect Materials per UnitTotal Cost of Direct Materials PurchasesExpected Unit SalesTotal Direct Labor CostDirect Labor Cost per HourTotal Required Direct Labor Hoursenter a total number of units for the first partenter a total number of units for the first partselect between addition and deduction AddLess: select a production budget item Direct Labor Time per UnitDirect Labor Cost per HourTotal Required UnitsTotal Materials RequiredTotal Required Direct Labor HoursCost per PoundRequired Production UnitsDesired Ending Finished Goods UnitsDesired Ending Direct MaterialsBeginning Finished Goods UnitsBeginning Direct MaterialsDirect Materials per UnitTotal Pounds Needed for ProductionExpected Unit SalesDirect Materials PurchasesTotal Direct Labor CostTotal Cost of Direct Materials Purchasesenter a number of unitsenter a number of unitsselect a closing production budget item Total Required Direct Labor HoursDirect Materials PurchasesTotal Direct Labor CostDirect Labor Cost per HourTotal Required UnitsDirect Materials per UnitCost per PoundDirect Labor Time per UnitRequired Production UnitsExpected Unit SalesTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods UnitsDesired Ending Direct MaterialsBeginning Direct MaterialsTotal Pounds Needed for ProductionBeginning Finished Goods UnitsTotal Materials Requiredenter a total number of unitsenter a total number of unitsenter a total number of unitseTextbook and MediaPrepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.)COOK FARM SUPPLY COMPANYDirect Materials Budget—Gummchoose the accounting period June 30, 2020For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020QuarterSixMonths12select an opening direct materials budget item Desired Ending Finished Goods UnitsDesired Ending Direct Materials (Pounds)Total Direct Labor CostDirect Materials PurchasesDirect Labor Time (Hours) per UnitDirect Labor Cost per HourTotal Materials RequiredTotal Required Direct Labor HoursUnits to be ProducedDirect Materials per UnitBeginning Direct Materials (Pounds)Cost per PoundTotal Pounds Needed for ProductionExpected Unit SalesTotal Cost of Direct Materials PurchasesBeginning Finished Goods UnitsTotal Required Unitsenter a number of unitsenter a number of unitsselect an item Direct Labor Time (Hours) per UnitBeginning Finished Goods UnitsBeginning Direct Materials (Pounds)Direct Materials per UnitUnits to be ProducedCost per PoundTotal Required UnitsTotal Pounds Needed for ProductionDesired Ending Direct Materials (Pounds)Total Cost of Direct Materials PurchasesTotal Direct Labor CostDirect Materials PurchasesDirect Labor Cost per HourTotal Required Direct Labor HoursDesired Ending Finished Goods UnitsTotal Materials RequiredExpected Unit Salesenter the amount of poundsenter the amount of poundsselect a summarizing line for the first part Desired Ending Direct Materials (Pounds)Cost per PoundBeginning Finished Goods UnitsTotal Materials RequiredTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods UnitsTotal Direct Labor CostDirect Materials per UnitDirect Materials PurchasesUnits to be ProducedExpected Unit SalesBeginning Direct Materials (Pounds)Total Required UnitsTotal Required Direct Labor HoursDirect Labor Time (Hours) per UnitDirect Labor Cost per Hourenter a total amount of pounds for the first partenter a total amount of pounds for the first partselect between addition and deduction AddLess: select an item Direct Materials PurchasesDirect Materials per UnitDirect Labor Cost per HourTotal Required UnitsTotal Cost of Direct Materials PurchasesDirect Labor Time (Hours) per UnitBeginning Finished Goods UnitsExpected Unit SalesBeginning Direct Materials (Pounds)Total Materials RequiredTotal Required Direct Labor HoursTotal Pounds Needed for ProductionUnits to be ProducedTotal Direct Labor CostDesired Ending Finished Goods UnitsDesired Ending Direct Materials (Pounds)Cost per Poundenter the amount of poundsenter the amount of poundsselect a summarizing line for the second part Cost per PoundTotal Direct Labor CostExpected Unit SalesTotal Materials RequiredTotal Required Direct Labor HoursTotal Required UnitsDirect Materials per UnitDesired Ending Direct Materials (Pounds)Total Cost of Direct Materials PurchasesDirect Materials PurchasesDirect Labor Time (Hours) per UnitDirect Labor Cost per HourDesired Ending Finished Goods UnitsBeginning Direct Materials (Pounds)Total Pounds Needed for ProductionBeginning Finished Goods UnitsUnits to be Producedenter a total amount of pounds for the second partenter a total amount of pounds for the second partselect between addition and deduction AddLess: select an item Desired Ending Finished Goods UnitsBeginning Finished Goods UnitsDesired Ending Direct Materials (Pounds)Direct Labor Time (Hours) per UnitTotal Pounds Needed for ProductionExpected Unit SalesDirect Materials PurchasesCost per PoundTotal Required Direct Labor HoursTotal Required UnitsDirect Labor Cost per HourTotal Materials RequiredTotal Cost of Direct Materials PurchasesBeginning Direct Materials (Pounds)Direct Materials per UnitTotal Direct Labor CostUnits to be Producedenter the amount of poundsenter the amount of poundsselect a summarizing line for the third part Total Required UnitsBeginning Finished Goods UnitsTotal Pounds Needed for ProductionCost per PoundDirect Labor Time (Hours) per UnitDesired Ending Direct Materials (Pounds)Expected Unit SalesDirect Materials PurchasesUnits to be ProducedTotal Required Direct Labor HoursDesired Ending Finished Goods UnitsTotal Direct Labor CostDirect Materials per UnitTotal Cost of Direct Materials PurchasesBeginning Direct Materials (Pounds)Total Materials RequiredDirect Labor Cost per Hourenter a total amount of pounds for the third partenter a total amount of pounds for the third partselect an item Beginning Direct Materials (Pounds)Total Direct Labor CostDirect Labor Time (Hours) per UnitTotal Materials RequiredTotal Cost of Direct Materials PurchasesExpected Unit SalesBeginning Finished Goods UnitsDirect Labor Cost per HourDesired Ending Direct Materials (Pounds)Desired Ending Finished Goods UnitsTotal Pounds Needed for ProductionUnits to be ProducedTotal Required Direct Labor HoursCost per PoundTotal Required UnitsDirect Materials PurchasesDirect Materials per Unit$enter a dollar amount $enter a dollar amount select a closing direct materials budget item Beginning Direct Materials (Pounds)Total Pounds Needed for ProductionTotal Required UnitsDesired Ending Finished Goods UnitsCost per PoundTotal Materials RequiredUnits to be ProducedDirect Materials per UnitExpected Unit SalesDesired Ending Direct Materials (Pounds)Total Cost of Direct Materials PurchasesDirect Labor Time (Hours) per UnitDirect Materials PurchasesTotal Required Direct Labor HoursBeginning Finished Goods UnitsDirect Labor Cost per HourTotal Direct Labor Cost$enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.)COOK FARM SUPPLY COMPANYDirect Labor Budgetchoose the accounting period For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020June 30, 2020QuarterSixMonths12select an opening labor budget item Total Required Direct Labor HoursDesired Ending Finished Goods UnitsTotal Materials RequiredTotal Required UnitsTotal Direct Labor CostTotal Pounds Needed for ProductionCost per PoundBeginning Finished Goods UnitsBeginning Direct Materials (Pounds)Units to be ProducedDesired Ending Direct Materials (Pounds)Direct Materials per UnitDirect Labor Cost per HourDirect Labor Time (Hours) per UnitDirect Materials PurchasesExpected Unit SalesTotal Cost of Direct Materials Purchasesenter a number of unitsenter a number of unitsselect a labor budget item Desired Ending Finished Goods UnitsBeginning Finished Goods UnitsDirect Labor Time (Hours) per UnitDirect Materials PurchasesBeginning Direct Materials (Pounds)Direct Materials per UnitTotal Pounds Needed for ProductionExpected Unit SalesTotal Cost of Direct Materials PurchasesTotal Materials RequiredDirect Labor Cost per HourTotal Direct Labor CostTotal Required Direct Labor HoursUnits to be ProducedDesired Ending Direct Materials (Pounds)Total Required UnitsCost per Poundenter a number of hoursenter a number of hoursselect a summarizing line for the first part Total Pounds Needed for ProductionDesired Ending Direct Materials (Pounds)Total Required Direct Labor HoursDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Materials RequiredDirect Labor Cost per HourBeginning Finished Goods UnitsUnits to be ProducedBeginning Direct Materials (Pounds)Expected Unit SalesDesired Ending Finished Goods UnitsCost per PoundDirect Materials per UnitTotal Direct Labor CostTotal Required UnitsDirect Labor Time (Hours) per Unitenter a total number of hours for the first partenter a total number of hours for the first partselect a labor budget item Expected Unit SalesDesired Ending Finished Goods UnitsDirect Labor Cost per HourBeginning Direct Materials (Pounds)Total Required Direct Labor HoursTotal Required UnitsTotal Pounds Needed for ProductionDesired Ending Direct Materials (Pounds)Direct Materials PurchasesTotal Direct Labor CostBeginning Finished Goods UnitsDirect Labor Time (Hours) per UnitUnits to be ProducedTotal Materials RequiredCost per PoundTotal Cost of Direct Materials PurchasesDirect Materials per Unit$enter a dollar amount $enter a dollar amount select a closing labor budget item Beginning Direct Materials (Pounds)Direct Labor Cost per HourDirect Materials per UnitTotal Materials RequiredDirect Labor Time (Hours) per UnitDirect Materials PurchasesTotal Direct Labor CostDesired Ending Direct Materials (Pounds)Total Pounds Needed for ProductionCost per PoundTotal Required UnitsTotal Cost of Direct Materials PurchasesExpected Unit SalesBeginning Finished Goods UnitsUnits to be ProducedDesired Ending Finished Goods UnitsTotal Required Direct Labor Hours$enter a total dollar amount $enter a total dollar amount $enter a total dollar amount Prepare the selling and administrative expense budget.COOK FARM SUPPLY COMPANYSelling and Administrative Expense Budgetchoose the accounting period For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020June 30, 2020QuarterSixMonths12select an item TotalVariable CostBudgeted sales in unitsFixed Costenter a total number of unitsenter a total number of unitsenter a total number of units select an item TotalVariable CostBudgeted sales in unitsFixed Cost$enter a dollar amount $enter a dollar amount $enter a dollar amount select an item Budgeted sales in unitsVariable CostTotalFixed Costenter a dollar amountenter a dollar amountenter a dollar amountselect a closing budget item Fixed CostVariable CostTotalBudgeted sales in units$enter a total dollar amount $enter a total dollar amount $enter a total dollar amount eTextbook and MediaPrepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to 0 decimal places, e.g. 1,255.)COOK FARM SUPPLY COMPANYBudgeted Income Statementchoose the accounting period For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020June 30, 2020select an income statement item Income from OperationsEnding InventoryIncome Tax ExpenseSalesInterest ExpenseIncome Before Income TaxGross ProfitPurchasesCost of Goods SoldBeginning InventoryTotal Operating ExpensesSelling and Administrative ExpensesOperating ExpensesNet Income / (Loss)$enter a dollar amount select an income statement item Interest ExpenseIncome Tax ExpenseSalesIncome Before Income TaxCost of Goods SoldOperating ExpensesTotal Operating ExpensesSelling and Administrative ExpensesBeginning InventoryNet Income / (Loss)Income from OperationsGross ProfitPurchasesEnding Inventoryenter a dollar amountselect a summarizing line for the first part Cost of Goods SoldEnding InventoryIncome Tax ExpenseIncome Before Income TaxBeginning InventoryOperating ExpensesSalesTotal Operating ExpensesInterest ExpensePurchasesIncome from OperationsSelling and Administrative ExpensesNet Income / (Loss)Gross Profitenter a total amount for the first partselect an income statement item PurchasesBeginning InventoryIncome Tax ExpenseSelling and Administrative ExpensesOperating ExpensesCost of Goods SoldIncome Before Income TaxGross ProfitNet Income / (Loss)Ending InventoryTotal Operating ExpensesInterest ExpenseSalesIncome from Operationsenter a dollar amountselect a summarizing line for the second part Beginning InventoryOperating ExpensesNet Income / (Loss)Income from OperationsSalesIncome Before Income TaxEnding InventoryGross ProfitInterest ExpenseIncome Tax ExpenseTotal Operating ExpensesPurchasesCost of Goods SoldSelling and Administrative Expensesenter a total amount for the second partselect an income statement item Beginning InventoryCost of Goods SoldInterest ExpenseTotal Operating ExpensesIncome from OperationsIncome Tax ExpensePurchasesEnding InventoryNet Income / (Loss)Income Before Income TaxOperating ExpensesSalesGross ProfitSelling and Administrative Expensesenter a dollar amountselect a summarizing line for the third part Cost of Goods SoldSalesNet Income / (Loss)Beginning InventoryIncome from OperationsGross ProfitTotal Operating ExpensesPurchasesSelling and Administrative ExpensesIncome Tax ExpenseOperating ExpensesInterest ExpenseEnding InventoryIncome Before Income Taxenter a total amount for the third partselect an income statement item Selling and Administrative ExpensesIncome Tax ExpenseOperating ExpensesIncome Before Income TaxNet Income / (Loss)Ending InventoryCost of Goods SoldGross ProfitIncome from OperationsSalesBeginning InventoryPurchasesTotal Operating ExpensesInterest Expenseenter a dollar amountselect a closing name for the budgeted income statement Net Income / (Loss)PurchasesCost of Goods SoldIncome from OperationsSalesEnding InventoryGross ProfitIncome Tax ExpenseOperating ExpensesInterest ExpenseIncome Before Income TaxSelling and Administrative ExpensesBeginning InventoryTotal Operating Expenses$enter a total net income or loss amount

Research the following statements and write a paper of 500 words on your findings:What are the key differences between a governmental unit and a commercial company? Discuss the following terms and how they are used during the budget process of a governmental unit: Appropriations Encumbrances Expenditures Budgetary fund balances Give examples for each of the above terms. Part 2: Given the following information, create the journal entries required for each of the situations described:Estimated revenuesProperty taxes$1,250,000Fines and forfeits80,000Intergovernmental 500,000Total$1,830,000AppropriationsGeneral$300,000 Streets 50,000Public safety 800,000Total$ 1,150,000Make the journal entry to record the adoption of the annual budget. Make the journal entries necessary to record the following cash revenues that were received: Property taxes$800,000Fines and forfeits73,000Intergovernmental 300,000Total$1,173,000Purchase orders were issued for the following goods and services: General$285,000 Streets 50,000Public safety 670,000Total$ 1,005,000Purchase orders were fulfilled based upon the following estimated and actual costs: EstimatedActualGeneral$285,000 $280,000Streets 50,00050,000Public safety 670,000660,000Total$ 1,005,000$ 990,000