*Problem 22-01A a-c (Video) 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. indire aintes 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: al van Type of Inventory Snare (bags) Gumm (pounds) Tarr (pounds) January 1 8,100 9,300 14,100 April 1 12,200 10,100 20,200 July 1 18,500 13,100 25,200 Isory "latio 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 Sactu 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. over (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.) Prepare the sales budget. per direb IVANHOE FARM SUPPLY COMPANY FICER 12ystem Announcements Prepare the sales budget. T RESOURCES Graded 2-01A a-d IVANHOE FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2020 Quarter ults by Study Six Months Expected Unit Sales 29400 422001 71600 Unit Selling Price 26164001 1822800 Total Sales 4439200 Prepare the production budget. IVANHOE FARM SUPPLY COMPANY Production Budget Prepare ure production vuuget. ENT RESOURCES 22 Graded Ik IVANHOE FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 n 22-01A a-d Quarter Results by Study Sin Months Expected Unit Sales Unit Sales 29400T 42200 Add Desired Ending Finished Goods Units 12200 18500 Total Required Units 41600 60700 Less Beginning Finished Goods Units 8100 12200 Required Production Units 33500 48500 82000 LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM VIDEO: SIMILAR PROBLEM Your answer is partially correct. Try again. Direct Materials Budget-Gumm For the Six Months Ending June 30, 2020 Quarter Six Months Units to be produced 33500 48500 Direct Materials per Unit Total Pounds Needed for Production 167500 242500 Add TDesired Ending Direct Materials (Pounds) 10100 13100 Total Materials Required 177600 255600 Less Beginning Direct Materials (Pounds) 9300 10100 Direct Materials Purchases 168300 245500 1999 Cost per Pound 3.80 3.80 - TE Total Cost of Direct Materials Purchases 639540 932900 1572440 Prepare the direct labor budget. (Enter Direct labor time per unit in proportion to hours, e.a. for 45 minutes the IVANHOE FARM SUPPLY COMPANY Direct Labor Budget For the Six Months Ending June 30, 2020 Quarter Six Months Units to be produced 33500 48500 EEE Direct Labor Time (Hours) per Unit Total Required Direct Labor Hours 8375 Direct Labor Cost per Hour 1 Total Direct Labor Cost 184000 194000 328000 Prepare the selling and administrative expense budget. IVANHOE FARM SUPPLY COMPANY Eyonce Budoet RCES IVANHOE FARM SUPPLY COMPANY Selling and Administrative Expense Budget For the Six Months Ending June 30, 2020 Quarter Six Months tudy Sales 29400 42200 71600 Variable Expenses 183410 185330 189740 Fixed Expenses 179000 179000 358000 Total Selling and Administrative Expenses 362410 364330 547740 LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PR TER Byslel Announcements IVANHOE FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2020 Sales 4439200 Cost of Goods Sold 388500 Gross Profit 4050700 Selling and Administrative Expenses 547740 Income from Operations 3502960 Interest Expense 100000 Income Before Income Tax 3402960 Income Tax Expense 1020888 Net Income / (Loss) 2382072 Click if you would like to Show Work for this question: Ope