Prepare Trenton's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours.

(Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 200 sets per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70% of sales on account. Sets are budgeted to sell for $90 per set Finished Goods Inventory on December 31, 2018, consists of 100 sets at $35 each. Desired ending Finished Goods Inventory is 30% of the next quarter's sales, first quarter sales for 2020 are expected to be 2,300 sets. FIFO inventory costing method is used Raw Materials Inventory on December 31, 2018, consists of 400 pounds. Direct materials requirement is 4 pounds per set. The cost is $1 per pound Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 400 pounds; indirect materials are insignificant and not considered for budgeting purposes b. c. d. e. f. Each set requires 0.20 hours of direct labor; direct labor costs average $8 per hour. g. Variable manufacturing overhead is $1.60 per set. (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) a. Budgeted sales are 1,500 sets for the first quarter and expected to increase by 200 sets per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70% of sales on account. Sets are budgeted to sell for $90 per set Finished Goods Inventory on December 31, 2018, consists of 100 sets at $35 each. Desired ending Finished Goods Inventory is 30% of the next quarter's sales, first quarter sales for 2020 are expected to be 2,300 sets. FIFO inventory costing method is used Raw Materials Inventory on December 31, 2018, consists of 400 pounds. Direct materials requirement is 4 pounds per set. The cost is $1 per pound Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019, is 400 pounds; indirect materials are insignificant and not considered for budgeting purposes b. c. d. e. f. Each set requires 0.20 hours of direct labor; direct labor costs average $8 per hour. g. Variable manufacturing overhead is $1.60 per set