Sales: quarter $1,28,600$ bags; quarter $2,43,400$ bags. Selling price is $$62$ per bag.

Direct materials: each bag of Snare requires $5$ pounds of Gumm at a cost of $$4$ per pound and $6$ pounds of Tarr at $$1\mathrm{.}50$ per pound.

Desired inventory levels:

$\backslash$table$[[$Type of Inventory,January $1,$April $1,$July $1],[$Snare $($bags$),8,400,12,300,18,300],[$Gumm $($pounds$),9,400,10,500,13,500],[$Tarr $($pounds$),14,300,20,400,25,100]]$

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 $$178,000$ 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 $$299,000$ in quarter $1$ and $$426,500$ in quarter $2.$

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, eg$.1,255.)$

CRANE FARM SUPPLY COMPANY

Budgeted Income Statement

$ $$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$$

$ $$

$$