Blossom 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, 29,200 bags; quarter 2,43,200 bags. Selling price is $61 per bag. 2. Direct materials: each bag of Snare requires 5 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.5 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,400 12,200 18,200 Gumm (pounds) 9,200 10,200 13,500 Tarr (pounds) 14,300 20,400 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 $180,000 per quarter. 6. Interest expense is $100,000. 7. 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 $301,000 in quarter 1 and $425,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) BLOSSOM FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2022, Quarter Six Months 1 2 Expected Unit Sales 4 29,200 43,200 72,400 Unit Selling Price $ 61 $ 61 $ 61 Total Sales $ 1,781,200 $ 2,635,200 $ 4,416,400 Prepare the production budget. BLOSSOM FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Expected Unit Sales 29,200 43,200 Add : Desired Ending Finished Goods Units 12,200 18,200 Total Required Units 4 41,400 61,400 Less : Beginning Finished Goods Units 8,400 12,200 i Required Production Units 33,000 49,200 BLOSSOM FARM SUPPLY COMPANY Direct Materials Budget-Gumm For the Six Months Ending June 30, 2022 Quarter 1 2 Units to be Produced 33000 49200 Beginning Direct Materials (Pounds) 5 Total Pounds Needed for Production Add : Desired Ending Finished Goods Units Total Required Units ELTOITUTE Less : Beginning Finished Goods Units Direct Materials per Unit Cost per Pound $ Total Cost of Direct Materials Purchases $ BLOSSOM FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2022 A Quarter Six Months 1 2 g and Administrative Expenses $ 1781200 $ 2635200 $ 441640C penses HA 267180 $ 395280 662460 ises 180000 180000 360000 and Administrative Expenses $ 447180 $ 575280 $ 1022460