Wildhorse 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 2022.

1.		Sales: quarter 1, 48,800 bags; quarter 2, 67,900 bags. Selling price is $60 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 $1.50 per pound.
3.		Desired inventory levels:

Type of Inventory		January 1		April 1		July 1
Snare (bags)		10,600		18,300		22,800
Gumm (pounds)		11,400		12,200		16,700
Tarr (pounds)		17,500		24,400		30,500

4.		Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16.00 per hour.
5.		Selling and administrative expenses are expected to be 15% of sales plus $213,500 per quarter.
6.		Interest expense is $100,000.
7.		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 $363,600 in quarter 1 and $540,600 in quarter 2. (Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.)

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

WILDHORSE FARM SUPPLY COMPANY Direct Materials BudgetGumm choose the accounting period For the Six Months Ending June 30, 2022June 30, 2022For the Quarter Ending June 30, 2022
		Quarter				Six Months
		1		2
select an opening direct materials budget item Desired Ending Finished Goods UnitsDirect Labor Cost per HourDirect Materials per UnitBeginning Finished Goods UnitsUnits to be ProducedDesired Ending Direct Materials (Pounds)Cost per PoundDirect Materials PurchasesTotal Direct Labor CostTotal Required Direct Labor HoursTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesBeginning Direct Materials (Pounds)Expected Unit SalesTotal Materials RequiredDirect Labor Time (Hours) per UnitTotal Required Units		enter a number of units		enter a number of units
select an item Cost per PoundDirect Materials PurchasesBeginning Direct Materials (Pounds)Total Direct Labor CostDirect Labor Cost per HourTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursDesired Ending Direct Materials (Pounds)Direct Materials per UnitTotal Required UnitsTotal Materials RequiredUnits to be ProducedDesired Ending Finished Goods UnitsDirect Labor Time (Hours) per UnitBeginning Finished Goods UnitsExpected Unit Sales		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the first part Cost per PoundExpected Unit SalesTotal Required UnitsDesired Ending Direct Materials (Pounds)Total Cost of Direct Materials PurchasesDirect Labor Cost per HourDirect Labor Time (Hours) per UnitTotal Materials RequiredUnits to be ProducedDirect Materials per UnitTotal Required Direct Labor HoursTotal Pounds Needed for ProductionDirect Materials PurchasesDesired Ending Finished Goods UnitsBeginning Direct Materials (Pounds)Total Direct Labor CostBeginning Finished Goods Units		enter a total amount of pounds for the first part		enter a total amount of pounds for the first part
select between addition and deduction AddLess: select an item Total Pounds Needed for ProductionTotal Materials RequiredDesired Ending Finished Goods UnitsCost per PoundBeginning Direct Materials (Pounds)Total Cost of Direct Materials PurchasesDirect Labor Cost per HourTotal Direct Labor CostTotal Required UnitsDesired Ending Direct Materials (Pounds)Expected Unit SalesDirect Materials per UnitUnits to be ProducedBeginning Finished Goods UnitsDirect Materials PurchasesTotal Required Direct Labor HoursDirect Labor Time (Hours) per Unit		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the second part Total Materials RequiredBeginning Direct Materials (Pounds)Units to be ProducedDesired Ending Finished Goods UnitsDirect Labor Cost per HourDesired Ending Direct Materials (Pounds)Total Pounds Needed for ProductionCost per PoundDirect Materials PurchasesTotal Cost of Direct Materials PurchasesTotal Required UnitsDirect Materials per UnitDirect Labor Time (Hours) per UnitBeginning Finished Goods UnitsTotal Direct Labor CostTotal Required Direct Labor HoursExpected Unit Sales		enter a total amount of pounds for the second part		enter a total amount of pounds for the second part
select between addition and deduction AddLess: select an item Direct Labor Time (Hours) per UnitDirect Materials PurchasesTotal Required UnitsExpected Unit SalesTotal Required Direct Labor HoursCost per PoundTotal Cost of Direct Materials PurchasesDirect Materials per UnitDesired Ending Finished Goods UnitsTotal Pounds Needed for ProductionTotal Materials RequiredDirect Labor Cost per HourTotal Direct Labor CostBeginning Finished Goods UnitsDesired Ending Direct Materials (Pounds)Units to be ProducedBeginning Direct Materials (Pounds)		enter the amount of pounds		enter the amount of pounds
select a summarizing line for the third part Direct Labor Cost per HourTotal Materials RequiredExpected Unit SalesCost per PoundTotal Direct Labor CostDirect Labor Time (Hours) per UnitTotal Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesTotal Required Direct Labor HoursTotal Required UnitsBeginning Finished Goods UnitsDesired Ending Direct Materials (Pounds)Direct Materials per UnitUnits to be ProducedDesired Ending Finished Goods UnitsDirect Materials PurchasesBeginning Direct Materials (Pounds)		enter a total amount of pounds for the third part		enter a total amount of pounds for the third part
select an item Direct Labor Time (Hours) per UnitBeginning Direct Materials (Pounds)Units to be ProducedTotal Pounds Needed for ProductionTotal Required UnitsDesired Ending Direct Materials (Pounds)Expected Unit SalesTotal Required Direct Labor HoursTotal Materials RequiredDirect Materials per UnitDirect Labor Cost per HourDirect Materials PurchasesBeginning Finished Goods UnitsDesired Ending Finished Goods UnitsCost per PoundTotal Cost of Direct Materials PurchasesTotal Direct Labor Cost		$enter a dollar amount		$enter a dollar amount
select a closing direct materials budget item Total Pounds Needed for ProductionTotal Cost of Direct Materials PurchasesDirect Materials PurchasesBeginning Finished Goods UnitsUnits to be ProducedDesired Ending Finished Goods UnitsTotal Required UnitsCost per PoundDirect Labor Time (Hours) per UnitExpected Unit SalesDirect Materials per UnitBeginning Direct Materials (Pounds)Desired Ending Direct Materials (Pounds)Total Required Direct Labor HoursDirect Labor Cost per HourTotal Materials RequiredTotal Direct Labor Cost		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount

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.)

And\

Prepare the selling and administrative expense budget.