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.

1. Prepare the sales budget by quarters.

WHISPERING WINDS 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

2. Prepare the production budget by quarters.

WHISPERING WINDS FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2022
	Quarter
		1		2		Six Months
select an opening production budget item Total required unitsRequired production in unitsDesired ending finished goodsExpected unit salesBeginning finished goods inventory		enter a number of units		enter a number of units		enter a number of units
select between addition and deduction AddLess: select a production budget item Beginning finished goods inventoryTotal required unitsExpected unit salesRequired production in unitsDesired ending finished goods		enter a number of units		enter a number of units		enter a number of units
select a summarizing line for the first part Total required unitsBeginning finished goods inventoryDesired ending finished goodsRequired production in unitsExpected unit sales		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 AddLess: select a production budget item Total required unitsDesired ending finished goodsExpected unit salesRequired production in unitsBeginning finished goods inventory		enter a number of units		enter a number of units		enter a number of units
select a closing production budget item Expected unit salesDesired ending finished goodsBeginning finished goods inventoryTotal required unitsRequired production in units		enter a total number of units		enter a total number of units		enter a total number of units

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

WHISPERING WINDS FARM SUPPLY COMPANY Direct Labour Budget For the Six Months Ending June 30, 2022
		Quarter
		1		2		Six Months
select an opening direct labour budget item Direct labour cost per hourDirect labour hours per unitTotal required for productionUnits to be producedTotal cost of direct labour		enter a number of units		enter a number of units		enter a number of units
select a labour budget item Units to be producedTotal required for productionTotal cost of direct labourDirect labour cost per hourDirect labour hours per unit		enter a number of hours rounded to 2 decimal places		enter a number of hours rounded to 2 decimal places		enter a number of hours rounded to 2 decimal places
select a summarizing line for the first part Total cost of direct labourTotal required for productionDirect labour cost per hourUnits to be producedDirect labour hours per unit		enter a total number of hours for the first part		enter a total number of hours for the first part		enter a total number of hours for the first part
select a labour budget item Total cost of direct labourUnits to be producedTotal required for productionDirect labour hours per unitDirect labour cost per hour		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 2 decimal places
select a closing direct labour budget item Direct labour hours per unitTotal cost of direct labourTotal required for productionUnits to be producedDirect labour cost per hour		$enter a total dollar amount		$enter a total dollar amount		$enter a total dollar amount