DAKBROOK FARM SUPPLY Dakbrook farm Supply manufactures a pesticide called Snare. The company is preparing its budget for the first two quarters of 2020. Sales in quarter 1 are budgeted at 35.000 bags for quarter 2. males are expected to be 50,000 bags. The selling price is $60 per bag. Create a sales budget. SALES BUDGET Sales, in bags Price Per Bag Sales Revenue Desired Inventory Levels: Snare Gumm (pounds) Tarr (pounds) PRODUCTION BUDGET Sales of Snare Budgeted +Desired Ending Inventory Subtotal -Beginning Inventory Units of Snare to Produce 42 -Beginning inventory of Gumm s Pounds of Gumm to Purchase Gumm Cost Per Pound Cost of Gumm Purchases 8 9 0 Bags of Snare to be Produced 1 47 48 DIRECT MATERIALS BUDGET-GUMM Bags of Snare to be Produced Pounds of Gumm Required per Bag Total Pounds Needed 49 +Desired Ending Inventory of Gumm Subtotal 50 43 +Desired Ending Inventory of Tarr 4 Subtotal as Beginning inventory of Tarr 46 Pounds of Tarr to Purchase Tarr Cost Per Pound Cost of Tarr Purchases DIRECT MATERIALS BUDGET-TARR Pounds of Tarr Required per Bag Total Pounds Needed Q1 Check Figures for Ta 50 1-Jan 8,000 9,000 14,000 Q1 0 0 Each bag of Snare requires 5 pounds of Gumm at a price of $3.00 per pound and 8 pounds of Tarr at $1.50 per pound Q1 0 0 0 $0 Q1 0 0 0 50 02 $477,000 50 1-Apr 12,000 10,000 20,000 A 02 0 D 02 0 0 0 50 02 D 0 0 $0 $475,500 1-Jul 18,000 13,000 25,000 Check Figs: Q1 50 Tarand Gumm Deta $0 $1,136,300 GIFORMULAS -C2-C36 SCHLICH CH-CH CH See Gm Deta See Gum Deta See Data See Tam ST ST Beta