B, follow e balan Complete ra net re udget yo budget y (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) Budgeted sales are 1,700 tires for the first quarter and expected to increase by 200 tires per quarter. Cash a. sales are expected to be 30% of total sales, with the remaining 70% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 200 tires at $30 each. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are c. expected be 2,500 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2018, consists of 400 pounds of rubber compound used to d. manufacture the tires. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is e. $5.00 per pound. Desired ending Raw Materials Inventory is 50% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 400 pounds; indirect materials are f. insignificant and not considered for budgeting purposes. g. Each tire requires 0.20 hours of direct labor; direct labor costs average $20 per hour. h. Variable manufacturing overhead is $1 per tire. Fixed manufacturing overhead includes $3,000 per quarter in depreciation and $5,550 per quarter for other i. costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $9,500 per quarter for salaries; $2,400 per quarter for j. rent: $1,950 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. aterials 1. edit fields Capital expenditures include $45,000 for new manufacturing equipment, to be purchased and paid in the first quarter. Cash receipts for sales on account are 60% in the quarter of the sale and 40% in the quarter following the sale; December 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible Print Done llar. Enter a cash Check Answe