How would I prepare the direct materials budget, direct labor budget, and selling and admin. expense budget?

Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the rst 2 quarters of 2020. 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 $3.80 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: 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 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% ofsales plus $176,000 per quarter. Interest expense is $100,000. Income taxes are expected to be 30% of income before income taxes. N991? 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.) COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30,2020 6 Quarter Six 1 2 Months Expected Unit Sales 29400 42400 71800 ' Unit Selling Price $ 63 $ 63 $ 63 ' Total Sales $ 1852200 $ 2671200 $ 4523400 Prepare the production budget. COOK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 6 Quarter Six 1 2 Months [ Expected Unit Sales $1 29400 42400 ' Add 6, 3 ' Desired Ending Finished Goods Units 9 12200 18500 ' Total Required Units 3 41600 60900 4P ' Less 3, I ' Beginning Finished Goods Units [ Required Production Units ] 33100 48700 81800 Your answer is partially correct. Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e3. 52.70.) COOK FARM SUPPLY COMPANY Direct Materials BudgetGumm For the Six Months Ending June 30, 2020 G Quarter Six 1 2 Months Units to be Produced 9 33100 48700 Direct Materials per Unit 3 4 4 Total Pounds Needed for Production 132400 194800 E E Desired Ending Direct Materials (Pounds) 9 10400 13100 Total Materials Req ui red 6 142800 207 900 Less 9] : [ Beginning Direct Materials (Pounds) 9] 9300 B 10400 n Direct Materials Purchases 3 133500 197500 Cost per Pound c $ 3.80 $ 3.80 Total Cost of Direct Materials Purchases 6 $ 507300 $ 750500 $ 1257800 Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, as. for 45 minutes the proportion will be 0.75.) COOK FARM SUPPLY COMPANY Direct Labor Budget Quarter Six 1 2 Months ' Beginning Finished Goods Units $, 33100 48700 [ Direct Labor Time (Hours) per Unit 9] ' Direct Labor Time (Hours) per Unit l [ Direct Labor Cost per Hour 9] $ 16 $ 16 ' Total Direct Labor Cost $, $ $ $ Prepare the selling and administrative expense budget. COOK FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2020 9 Quarter Six 1 2 Months ' Budgeted Sales in Units 6, $ 1852200 I $ 2671200 $ lVariable Expenses 6] $ 277830 | $ 400680 55 [ Fixed Expenses 61 176000 I 176000 ' Total Selling and Administrative Expenses 6, $ 101830 I $ 224680 $