Pina Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017.

1.		Sales: quarter 1, 29,200 bags; quarter 2, 43,200 bags. Selling price is $61 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)		8,400		12,200		18,200
Gumm (pounds)		9,200		10,200		13,500
Tarr (pounds)		14,300		20,400		25,400

4.		Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $14 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 $301,000 in quarter 1 and $425,500 in quarter 2.

Prepare the direct materials budget. (Round Cost per pound answers to 2 decimal places, e.g. 52.70.)

PINA COMPANY Direct Materials BudgetGumm June 30, 2017For the Quarter Ending June 30, 2017For the Six Months Ending June 30, 2017
		Quarter				Six Months
		1		2
Direct Materials PurchasesTotal Cost of Direct Materials PurchasesDesired Ending Direct MaterialsTotal Materials RequiredBeginning Direct MaterialsTotal Pounds Needed for ProductionDesired Ending Finished Goods UnitsTotal Required Direct Labor HoursTotal Direct Labor CostTotal Required UnitsDirect Labor Cost per HourDirect Labor Time per UnitUnits to be ProducedBeginning Finished Goods UnitsCost per PoundDirect Materials per UnitExpected Unit Sales
Direct Materials per UnitDirect Labor Time per UnitTotal Required UnitsTotal Required Direct Labor HoursTotal Direct Labor CostDesired Ending Direct MaterialsCost per PoundUnits to be ProducedBeginning Direct MaterialsDirect Labor Cost per HourBeginning Finished Goods UnitsDirect Materials PurchasesExpected Unit SalesTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesDesired Ending Finished Goods UnitsTotal Materials Required
Units to be ProducedTotal Direct Labor CostDesired Ending Finished Goods UnitsDirect Labor Cost per HourTotal Materials RequiredDirect Labor Time per UnitDesired Ending Direct MaterialsDirect Materials per UnitBeginning Direct MaterialsTotal Pounds Needed for ProductionDirect Materials PurchasesTotal Required Direct Labor HoursCost per PoundExpected Unit SalesTotal Cost of Direct Materials PurchasesBeginning Finished Goods UnitsTotal Required Units
AddLess : Beginning Direct MaterialsTotal Materials RequiredCost per PoundBeginning Finished Goods UnitsTotal Direct Labor CostDirect Labor Time per UnitDirect Materials PurchasesDirect Labor Cost per HourDirect Materials per UnitDesired Ending Finished Goods UnitsTotal Cost of Direct Materials PurchasesExpected Unit SalesTotal Pounds Needed for ProductionUnits to be ProducedTotal Required Direct Labor HoursTotal Required UnitsDesired Ending Direct Materials
Direct Labor Time per UnitDirect Materials PurchasesDirect Materials per UnitExpected Unit SalesTotal Cost of Direct Materials PurchasesDirect Labor Cost per HourBeginning Finished Goods UnitsTotal Direct Labor CostTotal Required UnitsTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required Direct Labor HoursCost per PoundDesired Ending Finished Goods UnitsUnits to be ProducedBeginning Direct MaterialsDesired Ending Direct Materials
AddLess : Beginning Direct MaterialsTotal Direct Labor CostDirect Labor Cost per HourTotal Required UnitsTotal Cost of Direct Materials PurchasesTotal Materials RequiredUnits to be ProducedDesired Ending Finished Goods UnitsDirect Materials per UnitTotal Pounds Needed for ProductionBeginning Finished Goods UnitsCost per PoundTotal Required Direct Labor HoursDesired Ending Direct MaterialsDirect Labor Time per UnitDirect Materials PurchasesExpected Unit Sales
Total Pounds Needed for ProductionBeginning Direct MaterialsBeginning Finished Goods UnitsTotal Direct Labor CostDirect Materials PurchasesDirect Labor Cost per HourTotal Cost of Direct Materials PurchasesTotal Materials RequiredDesired Ending Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsTotal Required Direct Labor HoursExpected Unit SalesTotal Required UnitsUnits to be ProducedDirect Labor Time per UnitDirect Materials per Unit
Beginning Direct MaterialsDirect Materials per UnitDirect Materials PurchasesExpected Unit SalesTotal Pounds Needed for ProductionDirect Labor Cost per HourTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursTotal Direct Labor CostTotal Required UnitsUnits to be ProducedBeginning Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsDirect Labor Time per UnitTotal Materials Required		$		$
Direct Materials per UnitDesired Ending Finished Goods UnitsTotal Materials RequiredDirect Materials PurchasesBeginning Finished Goods UnitsDesired Ending Direct MaterialsExpected Unit SalesDirect Labor Time per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostTotal Pounds Needed for ProductionTotal Required UnitsCost per PoundTotal Required Direct Labor HoursUnits to be ProducedDirect Labor Cost per HourBeginning Direct Materials		$		$		$

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.)

PINA COMPANY Direct Labor Budget For the Six Months Ending June 30, 2017June 30, 2017For the Quarter Ending June 30, 2017
		Quarter				Six Months
		1		2
Total Required Direct Labor HoursTotal Pounds Needed for ProductionDirect Labor Cost per HourDirect Labor Time per UnitDirect Materials PurchasesDirect Materials per UnitExpected Unit SalesTotal Required UnitsBeginning Direct MaterialsUnits to be ProducedTotal Materials RequiredTotal Cost of Direct Materials PurchasesTotal Direct Labor CostBeginning Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsDesired Ending Finished Goods Units
Units to be ProducedDirect Labor Cost per HourTotal Materials RequiredDirect Labor Time per UnitTotal Pounds Needed for ProductionBeginning Direct MaterialsDirect Materials PurchasesTotal Direct Labor CostDirect Materials per UnitTotal Required Direct Labor HoursBeginning Finished Goods UnitsTotal Required UnitsCost per PoundDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsExpected Unit SalesTotal Cost of Direct Materials Purchases
Direct Labor Cost per HourDirect Materials PurchasesDirect Labor Time per UnitTotal Required UnitsDirect Materials per UnitTotal Cost of Direct Materials PurchasesTotal Direct Labor CostExpected Unit SalesTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required Direct Labor HoursBeginning Direct MaterialsDesired Ending Direct MaterialsBeginning Finished Goods UnitsUnits to be ProducedCost per PoundDesired Ending Finished Goods Units
Cost per PoundUnits to be ProducedDirect Materials PurchasesTotal Materials RequiredExpected Unit SalesBeginning Direct MaterialsBeginning Finished Goods UnitsDesired Ending Direct MaterialsTotal Required Direct Labor HoursDirect Materials per UnitTotal Cost of Direct Materials PurchasesDirect Labor Cost per HourTotal Direct Labor CostTotal Pounds Needed for ProductionDirect Labor Time per UnitTotal Required UnitsDesired Ending Finished Goods Units		$		$
Beginning Finished Goods UnitsExpected Unit SalesDirect Materials per UnitDirect Materials PurchasesTotal Pounds Needed for ProductionUnits to be ProducedTotal Direct Labor CostTotal Required Direct Labor HoursTotal Cost of Direct Materials PurchasesTotal Materials RequiredTotal Required UnitsBeginning Direct MaterialsDirect Labor Cost per HourDesired Ending Finished Goods UnitsCost per PoundDesired Ending Direct MaterialsDirect Labor Time per Unit		$		$		$