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. IVANHOE FARM SUPPLY COMPANY Sales Budget Quarter Six Months 1 2 $ $ $ $ $ $ Prepare the production budget. IVANHOE FARM SUPPLY COMPANY Production Budget Quarter Six Months 1 2 : : eTextbook and Media Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.) IVANHOE FARM SUPPLY COMPANY Direct Materials BudgetGumm Quarter Six Months 1 2 : : $ $ $ $ $ Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.g. for 45 minutes the proportion will be 0.75.) IVANHOE FARM SUPPLY COMPANY Direct Labor Budget Quarter Six Months 1 2 $ $ $ $ $ Prepare the selling and administrative expense budget. IVANHOE FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter Six Months 1 2 $ $ $ $ $ $ $ $ $ eTextbook and Media Prepare the budgeted multiple-step income statement for the first 6 months. (Round intermediate calculations to 2 decimal places and final answer to 0 decimal places, e.g. 1,255.) IVANHOE FARM SUPPLY COMPANY Budgeted Income Statement $ $