Oriole 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, 29,800 bags; quarter 2, 43,800 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 $1.75 per pound.
3.		Desired inventory levels:

Type of Inventory		January 1		April 1		July 1
Snare (bags)		8,200		12,100		18,500
Gumm (pounds)		9,500		10,100		13,200
Tarr (pounds)		14,100		20,300		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 $180,000 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 $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.)

(a)

Prepare the sales budget.

ORIOLE FARM SUPPLY COMPANY Sales Budget For the Quarter Ending June 30, 2020For the Six Months Ending June 30, 2020June 30, 2020
		Quarter				Six Months
		1		2
Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price
Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$		$		$
Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price		$		$		$

Prepare the production budget.

ORIOLE FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020June 30, 2020For the Quarter Ending June 30, 2020
		Quarter				Six Months
		1		2
Direct Labor Time per UnitTotal Direct Labor CostDirect Labor Cost per HourDesired Ending Direct MaterialsBeginning Finished Goods UnitsDirect Materials per UnitTotal Cost of Direct Materials PurchasesExpected Unit SalesDesired Ending Finished Goods UnitsTotal Required Direct Labor HoursTotal Materials RequiredDirect Materials PurchasesBeginning Direct MaterialsTotal Pounds Needed for ProductionTotal Required UnitsRequired Production UnitsCost per Pound
AddLess: Total Pounds Needed for ProductionDirect Materials PurchasesExpected Unit SalesTotal Required Direct Labor HoursBeginning Direct MaterialsBeginning Finished Goods UnitsCost per PoundDirect Labor Cost per HourRequired Production UnitsDirect Materials per UnitTotal Cost of Direct Materials PurchasesDirect Labor Time per UnitTotal Direct Labor CostTotal Materials RequiredTotal Required UnitsDesired Ending Finished Goods UnitsDesired Ending Direct Materials
Desired Ending Direct MaterialsTotal Materials RequiredTotal Cost of Direct Materials PurchasesRequired Production UnitsTotal Direct Labor CostCost per PoundBeginning Direct MaterialsDirect Materials per UnitTotal Required UnitsTotal Required Direct Labor HoursTotal Pounds Needed for ProductionBeginning Finished Goods UnitsDesired Ending Finished Goods UnitsDirect Materials PurchasesDirect Labor Time per UnitDirect Labor Cost per HourExpected Unit Sales
AddLess: Total Cost of Direct Materials PurchasesDirect Labor Cost per HourTotal Required UnitsBeginning Finished Goods UnitsTotal Required Direct Labor HoursRequired Production UnitsTotal Materials RequiredDirect Materials PurchasesDesired Ending Finished Goods UnitsDirect Materials per UnitDirect Labor Time per UnitDesired Ending Direct MaterialsTotal Pounds Needed for ProductionTotal Direct Labor CostBeginning Direct MaterialsCost per PoundExpected Unit Sales
Direct Materials PurchasesTotal Required UnitsDirect Materials per UnitTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesTotal Pounds Needed for ProductionTotal Materials RequiredRequired Production UnitsExpected Unit SalesDirect Labor Cost per HourDesired Ending Finished Goods UnitsTotal Direct Labor CostBeginning Finished Goods UnitsDesired Ending Direct MaterialsBeginning Direct MaterialsCost per PoundDirect Labor Time per Unit