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, 29,400 bags; quarter 2, 42,600 bags. Selling price is $63 per bag.
2.		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.
3.		Desired inventory levels:

Type of Inventory		January 1		April 1		July 1
Snare (bags)		8,100		12,200		18,100
Gumm (pounds)		9,500		10,100		13,200
Tarr (pounds)		14,200		20,500		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 $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 $301,000 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 production budget.

COOK FARM SUPPLY COMPANY Production Budget choose the accounting period For the Six Months Ending June 30, 2020For the Quarter Ending June 30, 2020June 30, 2020
		Quarter				Six Months
		1		2
select an opening production budget item Total Direct Labor CostRequired Production UnitsTotal Materials RequiredTotal Required UnitsTotal Cost of Direct Materials PurchasesExpected Unit SalesBeginning Finished Goods UnitsDirect Materials per UnitCost per PoundDesired Ending Direct MaterialsBeginning Direct MaterialsDirect Labor Cost per HourDirect Materials PurchasesTotal Pounds Needed for ProductionDesired Ending Finished Goods UnitsDirect Labor Time per UnitTotal Required Direct Labor Hours		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Total Direct Labor CostCost per PoundRequired Production UnitsTotal Cost of Direct Materials PurchasesDirect Materials PurchasesTotal Materials RequiredBeginning Direct MaterialsDirect Labor Cost per HourTotal Required UnitsDirect Labor Time per UnitTotal Required Direct Labor HoursDesired Ending Direct MaterialsBeginning Finished Goods UnitsTotal Pounds Needed for ProductionDirect Materials per UnitExpected Unit SalesDesired Ending Finished Goods Units		enter a number of units		enter a number of units
select a summarizing line for the first part Beginning Direct MaterialsTotal Required UnitsExpected Unit SalesTotal Direct Labor CostDirect Materials per UnitDesired Ending Finished Goods UnitsTotal Required Direct Labor HoursTotal Pounds Needed for ProductionCost per PoundDirect Labor Time per UnitRequired Production UnitsDirect Labor Cost per HourDesired Ending Direct MaterialsTotal Materials RequiredDirect Materials PurchasesTotal Cost of Direct Materials PurchasesBeginning Finished Goods Units		enter a total number of units for the first part		enter a total number of units for the first part
select between addition and deduction AddLess: select a production budget item Total Direct Labor CostDesired Ending Finished Goods UnitsBeginning Direct MaterialsTotal Pounds Needed for ProductionBeginning Finished Goods UnitsRequired Production UnitsDirect Materials PurchasesDesired Ending Direct MaterialsDirect Labor Time per UnitDirect Materials per UnitTotal Materials RequiredDirect Labor Cost per HourCost per PoundTotal Required Direct Labor HoursExpected Unit SalesTotal Cost of Direct Materials PurchasesTotal Required Units		enter a number of units		enter a number of units
select a closing production budget item Direct Materials PurchasesCost per PoundRequired Production UnitsBeginning Finished Goods UnitsTotal Direct Labor CostTotal Required Direct Labor HoursDirect Materials per UnitDirect Labor Time per UnitTotal Materials RequiredExpected Unit SalesDirect Labor Cost per HourTotal Required UnitsDesired Ending Finished Goods UnitsTotal Cost of Direct Materials PurchasesBeginning Direct MaterialsTotal Pounds Needed for ProductionDesired Ending Direct Materials		enter a total number of units		enter a total number of units		enter a total number of units