Prepare the selling and administrative expense budget.

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

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.)

Prepare the selling and administrative expense budget.

Wildhorse Farm Supply Company manulactures and sells a pesticide called Snare. The following dala are available for preparing budgets for Snare for the list 2 quarters al 2022. 1. Sales: quarter 1.28,600 hags quarter 2,42,800 bags. Selling price is $63 per has 2. Direct materials: each bag of Snare requires 5 pounds of Gurmat a cost of $4 per pound arid 6 pounds of Tarrat $1.50 per pound 3. Desired Inventory levels: January 1 April 1 July 1 Type of Inventory Share bags 8.100 12,100 13,200 Gumm (pounds! 9,300 10,300 13.400 Tarr pounds! 14 300 20,400 25.200 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 $177.000 per quarter. 6. Interest expense is $100,000 Income taxes are expected to be 20% of income before income taxes. 7. 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 quarte 2 (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr) (a) Your answer is correct. Prepare the sales budget. WILDHORSE FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2022 Quarter Six Months 1 2 Expected Unit Sales 28600 12800 71400 Unit Selling Price $ 63 $ 63 $ 63 Total Sales 3 1601600 5 2696100 $ $ 4190200 Prepare the production budget. WILDHORSE FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter 1 2 Expected Lint Sales 28600 42800 Art Added : Desired Endine Finished Goods Units 12100 18200 Total Recure Un 40700 61000 Less Beginning Finished Gooch Units -8100 i - 12100 1 Required Production Units 22400 48900 WILDHORSE FARM SUPPLY COMPANY Direct Materials Budget-Gumm Quarter Six Months 1 2 $ $ $ $ $ WILDHORSE FARM SUPPLY COMPANY Direct Labor Budget Quarter Six Months 1 2 > > $ > $ $ $ $ > WILDHORSE FARM SUPPLY COMPANY Selling and Administrative Expense Budget Quarter Six Months 1 2 > $ $ $ $ $