Whispering Winds 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, 28,000 bags; quarter 2, 44,000 bags. Selling price is $63 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			14,000		20,000
Gumm (kg)		9,000			11,000		14,000
Tarr (kg)		14,000			20,000		26,000

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 $174,000 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 $299,000 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 selling and administrative expense budget by quarters.

WHISPERING WINDS FARM SUPPLY COMPANY Selling and Administrative Expenses Budget For the Six Months Ending June 30, 2022
	Quarter
		1		2		Six Months
select an item Expected salesVariable costsFixed costsTotal selling and admin costs		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item Expected salesFixed costsVariable costsTotal selling and admin costs		$enter a dollar amount		$enter a dollar amount		$enter a dollar amount
select an item Total selling and admin costsExpected salesFixed costsVariable costs		enter a dollar amount		enter a dollar amount		enter a dollar amount
select a closing name for this budget Total selling and admin costsVariable costsExpected salesFixed costs		$enter a total amount		$enter a total amount		$enter a total amount

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.)

WHISPERING WINDS FARM SUPPLY COMPANY Budgeted Income Statement For the Six Months Ending June 30, 2022
select an income statement item Income tax expenseSelling and administrative expensesPurchasesGross profitIncome before income taxesSalesCost of goods available for saleEnding inventoryBeginning inventoryNet lossNet incomeCost of goods sold		$enter a dollar amount
select between addition and deduction AddLess:select an income statement item Net lossIncome tax expenseCost of goods soldBeginning inventoryNet incomeCost of goods available for salePurchasesSalesIncome before income taxesEnding inventoryGross profitSelling and administrative expenses		enter a dollar amount
select a summarizing line for the first part Beginning inventoryNet lossCost of goods available for saleNet incomeGross profitSalesEnding inventoryIncome tax expenseCost of goods soldPurchasesSelling and administrative expensesIncome before income taxes		enter a total amount for the first part
select an income statement item Cost of goods available for saleSalesIncome tax expenseEnding inventoryNet incomeNet lossBeginning inventoryCost of goods soldIncome before income taxesGross profitPurchasesSelling and administrative expenses		enter a dollar amount
select a summarizing line for the second part PurchasesNet incomeSalesSelling and administrative expensesIncome before income taxesIncome tax expenseCost of goods available for saleGross profitCost of goods soldBeginning inventoryNet lossEnding inventory		enter a total amount for the second part
select an income statement item Gross profitIncome before income taxesNet lossPurchasesBeginning inventorySelling and administrative expensesCost of goods available for saleCost of goods soldSalesIncome tax expenseEnding inventoryNet income		enter a dollar amount
select a closing name for this statement Cost of goods available for salePurchasesIncome tax expenseCost of goods soldNet lossIncome before income taxesSelling and administrative expensesBeginning inventorySalesGross profitEnding inventoryNet income		$enter a total amount for this statement