Type of Inventory		January 1			April 1		July 1
	Snare (bags)		7,000			13,000		16,000
	Gumm (kg)		9,000			9,000		12,000
	Tarr (kg)		16,000			20,000		24,000

4.	Direct labour: Direct labour time is 15 minutes per bag at an hourly rate of $12 per hour.
5.	The company expects selling and administrative expenses to be 15% of sales plus $175,000 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 $296,000 in quarter 1 and $440,000 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 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.)

TILGER FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2020
Selling and administrative expensesCost of goods soldBeginning inventoryIncome tax expenseNet lossNet incomeCost of goods available for saleEnding inventoryPurchasesGross profitSalesIncome before income taxes		$
LessAdd : SalesNet incomeCost of goods soldGross profitIncome before income taxesEnding inventoryPurchasesIncome tax expenseSelling and administrative expensesBeginning inventoryNet lossCost of goods available for sale
Income tax expenseGross profitEnding inventorySalesNet lossPurchasesCost of goods soldBeginning inventoryCost of goods available for saleIncome before income taxesNet incomeSelling and administrative expenses
Gross profitEnding inventoryIncome before income taxesBeginning inventoryIncome tax expenseCost of goods soldNet incomeSelling and administrative expensesNet lossCost of goods available for salePurchasesSales
Cost of goods available for saleCost of goods soldSelling and administrative expensesNet incomeIncome before income taxesBeginning inventoryIncome tax expensePurchasesGross profitNet lossEnding inventorySales
Ending inventorySalesNet incomeSelling and administrative expensesPurchasesIncome before income taxesGross profitCost of goods soldIncome tax expenseBeginning inventoryNet lossCost of goods available for sale
SalesSelling and administrative expensesBeginning inventoryNet incomeCost of goods soldGross profitNet lossIncome before income taxesCost of goods available for saleIncome tax expenseEnding inventoryPurchases		$