A Company manufactures and sells product X. The following data are available for preparing budgets for product X the first 2 quarters of 2018. 1. Sales: quarter 1, 20,000 units; quarter 2,30,000 units. Selling price is SAR150 per unit. April 1 July 1 2. Direct materials: each unit of product X requires 5 pounds of material at a cost of SARS per pound 3. Desired inventory levels: Type of Inventory January 1 Finished goods (units) 5,000 10,000 15,000 Material (pounds) 10,000 12,000 15,000 4. Direct labor: direct labor time is 2 hours per unit at an hourly rate of SAR10 per hour. 5. The manufacturing overhead budget shows expected costs to be 120% of direct labor cost 5. Selling and administrative expenses are expected to be SAR20 per unit of sales plus SAR200,000 per quarter. 6. Interest expense is SAR200,000. 7. Income taxes are expected to be 30% of income before income taxes. Required: Prepare the budgeted multiple-step income statement for the first 6 months and all required operating budgets by quarters. Page 1 of 1 176 wards CS English (United States O Focus E + 70%