Ivanhoe 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. 2. Sales: quarter 1.29,400 bags; quarter 2.42.200 bags. Selling price is $62 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 $1.50 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,100 12.200 18.500 Gumm (pounds) 9.300 10,100 13.100 Tarr (pounds) 14,100 20.200 25.200 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. 5. 6. Selling and administrative expenses are expected to be 15% of sales plus $179,000 per quarter Interest expense is $100,000 7 Income taxes are expected to be 20% of income before income tax 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 $424.500 in quarter 2. (a) Prepare the sales budget IVANHOE FARM SUPPLY COMPANY Sales Budget Quarter Direct Labor Direct Materials Expected Unt Sales Production Unit Total Sales Unit Selling Price Prepare the production budget. $ IVANHOE FARM SUPPLY COMPANY Production Budget Six Months Prepare the production budget Total Required Direct Labor Hours Desired Ending Finished Goods Units Expected Unit Sales Beginning Direct Material Direct Materials per Un Total Cost of Dent Materials Purchases Desired Ending Dust Materials Beginning Fished Goods Tital Direct Labor Co Direct Laber Cast Hour Direct Materials Pesha Total Materials Regard Total Remarad Unit Total Pounds Needed for Prot Save IVANHOE FARM SUPPLY COMPANY Production Budget Quarter Six Months Attempts: 0 of 3 used Suit A