Managerial Accounting, $6$th Canadian Edition, by Weygandt, Kieso, Kimmel and Aly

"Group Project 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 $2025.$

$3.$ Desired inventory levels:

Instructions:

Prepare the budgeted income statement for the first six months and all required 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.