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.

1.		Sales: quarter 1, 28,400 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)		8,500		12,300		18,100
Gumm (pounds)		9,300		10,300		13,100
Tarr (pounds)		14,300		20,500		25,100

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 $176,000 per quarter.
6.		Interest expense is $100,000.
7.		Income taxes are expected to be 20% 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 $299,000 in quarter 1 and $427,500 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)

(a)

Prepare the sales budget.

IVANHOE FARM SUPPLY COMPANY Sales Budget choose the accountimg period For the Six Months Ending June 30, 2022For the Quarter Ending June 30, 2022June 30, 2022
		Quarter				Six Months
		1		2
select an opening sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		enter a number of units		enter a number of units		enter a number of units
select a sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select a closing sales budget item Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$enter a total amount for the sales budget		$enter a total amount for the sales budget		$enter a total amount for the sales budget

Prepare the production budget.

IVANHOE FARM SUPPLY COMPANY Production Budget choose the accounting period For the Six Months Ending June 30, 2022For the Quarter Ending June 30, 2022June 30, 2022
		Quarter				Six Months
		1		2
select an opening production budget item Expected Unit SalesDesired Ending Finished Goods UnitsBeginning Finished Goods UnitsDirect Materials PurchasesDesired Ending Direct MaterialsTotal Required UnitsBeginning Direct MaterialsTotal Cost of Direct Materials PurchasesDirect Materials per UnitRequired Production UnitsTotal Materials RequiredTotal Required Direct Labor HoursTotal Pounds Needed for ProductionDirect Labor Cost per HourTotal Direct Labor CostDirect Labor Time per UnitCost per Pound		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Total Required Direct Labor HoursRequired Production UnitsCost per PoundTotal Pounds Needed for ProductionDirect Labor Time per UnitTotal Required UnitsDirect Labor Cost per HourBeginning Finished Goods UnitsBeginning Direct MaterialsTotal Materials RequiredExpected Unit SalesDesired Ending Direct MaterialsTotal Cost of Direct Materials PurchasesTotal Direct Labor CostDesired Ending Finished Goods UnitsDirect Materials PurchasesDirect Materials per Unit		enter a number of units		enter a number of units
select a summarizing line for the first part Beginning Direct MaterialsTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Direct Labor CostDesired Ending Finished Goods UnitsTotal Required UnitsTotal Required Direct Labor HoursTotal Pounds Needed for ProductionDirect Labor Time per UnitDesired Ending Direct MaterialsDirect Labor Cost per HourDirect Materials per UnitExpected Unit SalesBeginning Finished Goods UnitsDirect Materials PurchasesCost per PoundRequired Production Units		enter a total number of units for the first part		enter a total number of units for the first part
select between addition and deduction AddLess: select a production budget item Desired Ending Finished Goods UnitsTotal Direct Labor CostCost per PoundDirect Labor Cost per HourDirect Materials PurchasesDirect Materials per UnitTotal Required UnitsExpected Unit SalesBeginning Finished Goods UnitsBeginning Direct MaterialsTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursDesired Ending Direct MaterialsDirect Labor Time per UnitTotal Materials RequiredRequired Production UnitsTotal Pounds Needed for Production		enter a number of units		enter a number of units
select a closing production budget item Direct Materials per UnitBeginning Direct MaterialsExpected Unit SalesTotal Pounds Needed for ProductionDirect Labor Time per UnitBeginning Finished Goods UnitsCost per PoundTotal Cost of Direct Materials PurchasesRequired Production UnitsTotal Materials RequiredTotal Required Direct Labor HoursTotal Direct Labor CostDirect Labor Cost per HourDesired Ending Finished Goods UnitsTotal Required UnitsDirect Materials PurchasesDesired Ending Direct Materials		enter a total number of units for the production budget		enter a total number of units for the production budget		enter a total number of units for the production budget