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$ for the $2$ quarters.

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 $$303,000$ in quarter $1$ and $$423,500$ in quarter

$($Note: Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.$)$Prepare the budgeted multiple$-$step income statement for the first $6$ months. $($Round intermediate calculations to $2$ decimal

places and final answer to $0$ decimal places, e$.$g$.1,255.)$

SUNLAND FARM SUPPLY COMPANY

Budgeted Income Statement

For the Six Months Ending June $30,2025gra{d}^{}$