Indigo Farm Supply Company manufactures and sells a fertilizer called Snare. The following data are available for preparing budgets for Snare for the first two quarters of 2022. 1. Sales: Quarter 1, 28,000 bags; quarter 2, 44,000 bags. Selling price is $54 per bag. 2. Direct materials: Each bag of Snare requires 4 kg of Gumm at $4.00 per kilogram and 6 kg of Tarr at $1.50 per kilogram. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 7,000 12,000 16,000 Gumm (kg) 9,000 10,000 13,000 Tarr (kg) 14,000 20,000 24,000 4. Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $12.00 per hour. 5. The company expects selling and administrative expenses to be 15% of sales plus $173,000 per quarter. 6. It expects income taxes to be 30% of income from operations. Your assistant has prepared two budgets: (1) The manufacturing overhead budget shows expected costs to be 150% of direct labour cost. (2) The direct materials budget for Tarr shows the cost of Tarr purchases to be $297,000 in quarter 1 and $444,000 in quarter 2. Prepare the following operating budgets by quarters. (Note: Classify items as variable and fixed in the selling and administrative expenses budget.) Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr.

1-Prepare the sales budget by quarters.

-Prepare the production budget by quarters.

-Prepare the production budget by quarters.

-Prepare the direct labour budget by quarters and

the direct materials budget by quarters.

-Prepare the selling and administrative expense budget by quarters. -

Prepare the budgeted income statement for the first six months