Sales: quarter $1,28,600$ bags; quarter $2,42,800$ bags. Selling price is $$63$ per bag.

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\mathrm{.}5$ per pound.

Desired inventory levels:

$\backslash$table$[[$Type of Inventory,January $1,$April $1,$July $1],[$Snare $($bags$),8,100,12,100,18,200],[$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.

Selling and administrative expenses are expected to be $15\%$ of sales plus $$177,000$ per quarter.

Interest expense is $$100,000.$

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 quarte. Question a$)$ prepare a sales budget

WILDHORSE FARM SUPPLY COMPANY Sales Budget

Quarter

$1$

$2$

Six

$\backslash$table$[[1],[$$