Solarwise Pty Ltd manufactures a special ceramic tile, a component in residential solar energy systems. Sales are seasonal due to the seasonality in the home-building industry The expected sales (in units) for each quarter of the next year (2018) is as follows: 1st Quarter 2nd Quarter 6,000 Sales in the 4th quarter of 2017 (i.e., the previous year) $100,000 (4,000 units) 2,000 3rd Quarter 4th Quarter 8,000 4,000 are expected to be Each tile sells for $25. All sales are on account with 70% of each quarter's sales collected in the quarter of sale, and the remaining 30% collected in the quarter following the sale. Management's inventory policy for Finished Goods is to have 10% of the following quarter's sales requirements in Finished Goods at the end of each quarter. At the end of 2017, Solarwise expects to have 200 units in inventory Each tile requires 2kg of raw material. The inventory policy for materials is to have 10% of next quarter's materials production requirements on hand at the end of each quarter. Solarwise expects to have 480kg of the material in inventory at the end of 2017 The raw material price is expected to be $4 per kg. The company buys raw material account and pays 50% in the quarter of purchase and the remaining 50% in the next quarter. The Accounts Payable balance (for raw materials) at the end of 2017 is expected to be $24,000 on Each tile uses .5 hours of direct labour. Labour is expected to be paid at $12 per hour. Wages and salaries are paid each month as incurred. Fixed manufacturing overheads for this product line total $11,000 each quarter (including $2,500 for depreciation). All fixed costs are paid for in the quarter incurred Variable manufacturing overhead is budgeted at $1 per direct labour hour. All variable overhead costs are paid for in the quarter incurred. Required: (a) For the first two quarters only of 2018 prepare the following budgets: i. the Production budget the Direct Materials Purchases Budget (10 marks) (b) Based on the information provided only, prepare the cash receipts and cash disbursements sections of the cash budget for the first quarter only of 2018 (7 marks)