Cullumber 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, 29,400 bags; quarter 2, 42,400 bags. Selling price is $63 per bag. 2. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $4 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: 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 $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.) Type of Inventory January 1 April 1 July 1 Snare (bags) 8,500 12,200 18,500 Gumm (pounds) 9,300 10,400 13,100 Tarr (pounds) 14,400 20,500 25,300 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 $176,000 per quarter. 6. Interest expense is $100,000. Total Sales Quarter 29,800 42,400 Direct Materials 3.8 Prepare the production budget. S S CULLUMBER FARM SUPPLY COMPANY Production Budget Six Months Quarter 2 62 (a) - Your answer is partially correct. Prepare the sales budget. CULLUMBER FARM SUPPLY COMPANY Sales Budget For the Quarter Ending June 30, 2022 CULLUMBER FARM SUPPLY COMPANY Production Budget 1 Quarter 2 CULLUMIDER TARPI SUPPLY COMPANT eTextbook and Media Production Budget Quarter Six Months Attempts unlimited Submit Ar