The Gerard Tire Company manufactures racing tires for bicycles. Gerard sells tires for $90 each. Gerard is planning for the next year by developing a master budget by quarters. Gerard's balance sheet for December 31, 2024, follows:

Gerard Tire Company
Balance Sheet
31-Dec-24
Assets
Current Assets:
Cash	$56,000
Accounts Receivable	20,000
Raw Materials Inventory	5,100
Finished Goods Inventory	9,900
Total Current Assets		$91,000
Property, Plant, and Equipment:
Equipment	194,000
Less: Accumulated Depreciation	-42,000	152,000
Total Assets		$243,000
Liabilities
Current Liabilities:
Accounts Payable		$8,000
Stockholders' Equity
Common Stock, no par	$120,000
Retained Earnings	115,000
Total Stockholders' Equity		235,000
Total Liabilities and Stockholders' Equity		$243,000

a.	Budgeted sales are 1,500 tires for the first quarter and expected to increase by 200 tires per quarter. Cash sales are expected to be 10% of total sales, with the remaining 90% of sales on account.
b.	Finished Goods Inventory on December 31, 2024 consists of 300 tires at $33 each.
c.	Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2026 are expected be 2,300 tires. FIFO inventory costing method is used.
d.	Raw Materials Inventory on December 31, 2024, consists of 600 pounds of rubber compound used to manufacture the tires.
e.	Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $8.50 per pound.
f.	Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2025 is 600 pounds; indirect materials are insignificant and not considered for budgeting purposes.
g.	Each tire requires 0.40 hours of direct labor; direct labor costs average $12 per hour.
h.	Variable manufacturing overhead is $4 per tire.
i.	Fixed manufacturing overhead includes $6,000 per quarter in depreciation and $16,770 per quarter for other costs, such as utilities, insurance, and property taxes.
j.	Fixed selling and administrative expenses include $12,500 per quarter for salaries; $3,000 per quarter for rent; $450 per quarter for insurance; and $2,000 per quarter for depreciation.
k.	Variable selling and administrative expenses include supplies at 2% of sales.
l.	Capital expenditures include $15,000 for new manufacturing equipment, to be purchased and paid in the first quarter.
m.	Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes.
n.	Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter; December 31, 2024, Accounts Payable is paid in the first quarter of 2025.
o.	Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred.
p.	Income tax expense is projected at $1,500 per quarter and is paid in the quarter incurred.
q.	Gerard desires to maintain a minimum cash balance of $55,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter.

Gerard Tire Company
Sales Budget
For the Year Ended December 31, 2025
	First	Second	Third	Fourth
	Quarter	Quarter	Quarter	Quarter	Total
Budgeted tires to be sold	1,500	1,700	1,900	2,100	7,200
Sales price per unit	$90	$90	$90	$90	$90
Total sales	$135,000	$153,000	$171,000	$189,000	$648,000

Gerard Tire Company
Production Budget
For the Year Ended December 31, 2025
	First	Second	Third	Fourth
	Quarter	Quarter	Quarter	Quarter	Total
Budgeted tires to be sold	1,500	1,700	1,900	2,100	7,200
Plus: Desired tires in ending inventory	510	570	630	690	690
Total tires needed	2,010	2,270	2,530	2,790	7,890
Less: Tires in beginning inventory	300	510	570	630	300
Budgeted tires to be produced	1,710	1,760	1,960	2,160	7,590

Prepare the direct materials budget (NEED HELP WITH).

Gerard Tire Company
Direct Materials Budget
For the Year Ended December 31, 2025
	First	Second	Third	Fourth
	Quarter	Quarter	Quarter	Quarter	Total
?	?	?	?	?	?
Direct materials per tire	?	?	?	?	?
Direct materials needed for production	?	?	?	?	?
Plus: ?	?	?	?	?	?
Total direct materials needed	?	?	?	?	?
Less: ?	?	?	?	?	?
Budgeted purchases of direct materials	?	?	?	?	?
Direct materials cost per pound	?	?	?	?	?
Budgeted cost of direct materials	?	?	?	?	?
	?	?	?	?	?