View Policies Current Attempt in Progress 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 $S7 per bag 2. Direct materials: Each bag of Snare requires 4 kg of Gummat $4.00 per kllogram and 6 kg of Tarrat $1.50 per kilogram. 3. Desired inventory levels: January 1 April 1 July 1 Type of Inventory Snare (bags) Gumm (kg) 8.000 12.000 20,000 9,000 9.000 13.000 13.000 21.000 24,000 Tarr (kg) mis 15 minutes per bag at an hourly rate of $12.00 per hour. 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 5295,000 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 ale che 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 SEX Months Expected sales in units $ $ Unit selling price $ Total sales Prepare the production budget by quarters TAMARISK FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2022 Quarter SEK Month Lected Required production in units Totuired unit Desired ending inds Beginning ishod podmory Prepare the direct labour budget by quarters. (Round drect labour hours per unit to 2 decimo poces, 6.2.0.15) Prepare the direct labour budget by quarters. (Round direct labour hours per unit to 2 decimal places, as 0.15) TAMARISK FARM SUPPLY COMPANY Direct Labour Budget For the Six Months Ending June 30, 2022 Quarter SEX Months Total cost of director Director con per hour Total regained for production Units to be produced Director thouse i bude by Quarters Prepare the direct material budget by TAMARISK FARM SUPPLY COMPANY Direct Materials Budget-Gumm For the St Month Ending lune 30, 2022 Quarter Disneden Becering Tore production To materiale Cestopam Units to be suced Direct material phases Total cost of purses Director Prepare the selling and administrative expense budget by quarters TAMARISK FARM SUPPLY COMPANY Selling and Administrative Expenses Budget For the Six Months Ending June 30, 2022 Quarter SIK Months $ $ Variable costs Expected sales Total selling and admin costs Fixed costs tement for the first six months. (Round per unit calculations to 2 decimal places... 0.25 and final Prepare the budgeted income statement for the first six months. (Round per unit calculations to 2 decimal places, es 0.25 and final answers to decimal placeses 125.) TAMARISK FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2022 Net income Income before income taxes Purchase Ending inventory Netloss Gross proht Sales Income tax expense Beginning luwentory Cost of goods available for sale Selling and administrative expenses Cost of toods sold