(b) Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places.eg. 5270.) PHAROAH FARM SUPPLY COMPANY Direct Materials Budget-Gumm V Quarter Units to be produced 32900 Direct Materials per Unit Total Pounds Needed for Production Add Desired Ending Direct Materials (Pounds) Total Materiais Recuired Less Beginning Direct Materials (Pounds Direct Materials Purchases Cost per Pound V $ $ Total Cost of Direct Materials Purchases V Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, eg for 45 minutes the proportion will be 0.75.) PHAROAH FARM SUPPLY COMPANY Direct Labor Budget Quarter $ $ $ Prepare the selling and administrative expense budget. PHAROAH FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter $ e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer Pharoah 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 2022 1 Sales: quarter 1, 28,600 baas: quarter 2,42,500 bags Selling price is $62 per bag Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tary at $150 per pound 2. 3 Desired inventory levels: Type of Inventory January 1 April 1 July 1 8100 12 400 18,500 Snare (bags) Gumm (pounds) 9.100 10,300 13,200 Tarr (pounds! 14300 20300 25,500 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 $177,000 per quarter 5. 6 Interest expense is $100.000 2 2 Income taxes are expected to be 20% 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 $299,000 in quarter i and $425,500 in Quarter 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) (a) Your Answer Correct Answer (Used) - Your answer is partially correct. Prepare the sales budget PHAROAH FARM SUPPLY COMPANY Sales Budget Farthe Sx Month Endine June 30,2022 Quarter Six Months 1 2 ed Unit Sales V 28600 42600 71200 Hling Price $ 62.00 $ S 62.00 $ $ 6200 ales $ 1773200.00 $ 2641200.00 $ 441440000 Prepare the production budget. PHAROAH FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2022 V Quarter 2 t Sales V 28600 42600 Desired Ending Finished Goods Units 12400 185CC d Units 41000 61100 Beginning Finished Goods Units 9100 i 12400 duction Units 32900 48700