Prepare a budgeted multi step income statement for the first 6 months and all required operating budgets by quarters. Use variable and fixed in the selling and administriavtice expense budget. ( Do not prepare the manufactoring overhead budget or the direct materials budget for Tarr. )

Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2017 1. Sales: quarter 1, 40,000 bags; quarter 2, 56,000 bags. Selling price is $60 per bag 2. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of S16 per hour 3. Direct Materials cost per bag of Snare is $24.20 5. Selling and administrative expenses are expected to be 15% of sales plus fixed expenses of $175,000 per quarter 6. Interest Expense is $100,000. 7. Income taxes are expected to be 30% of income before income taxes. Your assistant has prepared the manufacturing overhead budget shows expected costs to be 125% of direct labor cost. Inventory facts Type of Inventory Snare (bags) Remember that beginning inventory in a period is equal to the ending inventory in the prior period Instructions Prepare the budgeted multi-step income statement for the first 6 months and all required operating budgets by quarters. (Note: Use variable and fked in the selling and administrative expense budget.) Do not prepare the manufacturing overhead budget or the direct materials budget for Tarr 8,000 15,000 18,000 COOK FARM SUPPLY COMPANY Sales Budget For the Six Months Ending June 30, 2017 Quarter Six Months 2 Expected unit sales Unit selling price Total sales $60 $60 $60 Production Budget For the Six Months Ending June 30, 2017 Quarter Six Months 2 Expected unit sales Add: Desired ending finished goods units Total required units