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 2020. 1. 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 $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) 8,100 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. 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 $424,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prepare the sales budget. Unit Selling Price Unit Selling Price $ Total Sales +A $ IVANHOE FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2020 June 30, 2020 For the Quarter Ending June 30, 2020 $ +A $ +A $ +A $ Six Months Expected Unit Sales Add Less Total Cost of Direct Materials Purchases Total Direct Labor Cost Desired Ending Finished Goods Units Beginning Finished Goods Units Required Production Units Expected Unit Sales Beginning Direct Materials Total Required Units Desired Ending Direct Materials eTextbool Direct Labor Cost per Hour Save for Late Direct Materials Purchases Cost per Pound Total Pounds Needed for Production Direct Materials per Unit Direct Labor Time per Unit Total Materials Required b) The parts of thi Total Required Direct Labor Hours IVANHOE FARM SUPPLY COMPANY Production Budget Quarter Six 1 2 Months Attempts: 0 of 3 used Submit Answer art will be available when you complete the part above