Sandhill Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets

for Snare for the first $2$ quarters of $2025.$

Sales: quarter $1,28,000$ bags; quarter $2,43,000$ bags. Selling price is $$61$ 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{.}75$ per

pound.

Desired inventory levels:

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 $$302,000$ in quarter $1$ and $$427,500$ 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$.1,255.)$

SANDHILL FARM SUPPLY COMPANY

Budgeted Income Statement

For the S$1$x Months Ending June $30,2025$

Cost of Goods Sold

Income from Operations

Income Before Income Tax