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.

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

Prepare the production budget by quarters.

TAMARISK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2022
	Quarter
		1		2		Six Months
select an opening production budget item Beginning finished goods inventoryExpected unit salesRequired production in unitsTotal required unitsDesired ending finished goods		enter a number of units		enter a number of units		enter a number of units
select between addition and deduction LessAdd: select a production budget item Expected unit salesBeginning finished goods inventoryRequired production in unitsDesired ending finished goodsTotal required units		enter a number of units		enter a number of units		enter a number of units
select a summarizing line for the first part Expected unit salesBeginning finished goods inventoryDesired ending finished goodsTotal required unitsRequired production in units		enter a total number of units for the first part		enter a total number of units for the first part		enter a total number of units for the first part
select between addition and deduction LessAdd: select a production budget item Required production in unitsDesired ending finished goodsExpected unit salesBeginning finished goods inventoryTotal required units		enter a number of units		enter a number of units		enter a number of units
select a closing production budget item Beginning finished goods inventoryDesired ending finished goodsRequired production in unitsTotal required unitsExpected unit sales		enter a total number of units		enter a total number of units		enter a total number of units