Tamarisk 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, 26,000 bags; quarter 2, 44,000 bags. Selling price is $57 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)		8,000			12,000		20,000
Gumm (kg)		9,000			9,000		13,000
Tarr (kg)		13,000			21,000		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 $177,000 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 $295,000 in quarter 1 and $439,000 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.

Question 1: Prepare the sales budget by quarters.

TAMARISK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2022
		Quarter
		1		2		Six Months
Expected sales in units		enter a number of units		enter a number of units		enter a number of units
Unit selling price		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
Total sales		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount

Question 2: Prepare the production budget by quarters.

Question 3: Prepare the direct labour budget by quarters. (Round direct labour hours per unit to 2 decimal places, e.g. 0.15.

Question 4: Prepare the direct materials budget by quarters.

Question 5: Prepare the selling and administrative expense budget by quarters.

Question 6: Prepare the budgeted income statement for the first six months. (Round per unit calculations to 2 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 125.)