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Problem 10.33A al-a6 Tilger 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 2020. 1. Sales: Quarter 1, 28,000 bags; quarter 2, 42,000 bags. Selling price is $54 per bag. 2. Direct materials: Each bag of Snare requires 4 kg of Gumm at $4 per kilogram and 6 kg of Tarr at $1.50 per kilogram. 3. Desired inventory levels: Type of Inventory Snare (bags) Gumm (kg) Tarr (kg) January 1 8,000 8,000 13,000 April 1 11,000 9,000 20,000 July 1 18,000 15,000 25,000 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 $176,000 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 $294,000 in quarter 1 and $443,000 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. TILGER FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2020 Quarter Six Months Expected sales in units Unit selling price o I Total sales LA o Prepare the production budget by quarters. TILGER FARM SUPPLY COMPANY Production Budget For the Six Months Ending June 30, 2020 Quarter 2 Six Months Prepare the direct labour budget by quarters. (Round direct labour hours per unit to 2 decimal places, e.g. 0.15.) TILGER FARM SUPPLY COMPANY Direct Labour Budget For the Six Months Ending June 30, 2020 Quarter Six 1 2 Months Prepare the direct materials budget by quarters. TILGER FARM SUPPLY COMPANY Direct Materials Budget-Gumm For the Six Months Ending June 30, 2020 Quarter Six Months ta to Prepare the selling and administrative expense budget by quarters. TILGER FARM SUPPLY COMPANY Selling and Administrative Expenses Budget For the Six Months Ending June 30, 2020 Quarter Six Months 1 2 . 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