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m Homework Assignmente(Exerc X a Do Homework-Rawa Jakkcu X H Course Here x I + ( $ 0' i mathxl.com/Student/PlayerHomework.aspx?homeworkld=580667844&questionld=1&f|ushed=fa|se&cld=6253128¢erwin=yes {r e S Apps a YouTube 9 Maps News M Gmail 6 zoon.us Q My Deviceslche... * Settings-Security Acct 1090 - Prof. Edwards - Late Start Fall 2020 RawaJakkou A | 10/29/20 9:24 PM Homework: Week Six: Homework Mastery Problem Chapter 5 (mana Score: 0 of 8 pts 4 1 M1 (0 complete) V > HW Score: 0%, 0 of 8 pts PM5-41A (similar to) i The Grady Tire Company manufactures racing tires for bicycles. Grady sells tires for $85 each. Grady is planning for the Other data for Grady Tire Company: next year by developing a master budget by quarters. Grady's balance sheet for December 31, 2024, follows: 0 (Click the icon to view the other data.) a (Click the icon to view the balance sheet.) Read the muirements. Requirement 1. Prepare Grady's operating budget and cash budget for 2025 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. Round all calculations to the nearest dollar. Begin by preparing the sales budget. 0 Requirements 1. Prepare Grady's operating budget and cash budget for 2025 by quarter. First Second Third Fourth Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget. manufacturing overhead budget, Quarter Quarter Quarter Quarter Total 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. I Round all calculations to the nearest dollar. . Prepare Grady's annual nancial budget for 2025, including budgeted income I statement and budgeted balance sheet. E Budgeted tires to be sold Sales price per unit Total sales Enter any number in the edit fields and then click Check Answer. 1%: remaining m Homework Assignments (Exerc X PM5-41A (similar to) The Grady Tire Company manu : next year by developing a masts a (Click the icon to view the b Requirement 1. Prepare (-1de cost of goods sold budget, selli 9 the nearest dollar. Begin by preparing the sales bu Budgeted tires to be sold Sales price per unit Total sales Enter any number in the edit fi 1 parts . remaining 0 Data Table - X o More Info CunentAssets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total CurrentAssets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Cunent Liabilities: Llabllltles 4.200 7,200 (94,000) 89,000 181,400 .X (Unless otheMise noted, assume all of the following evens occurred during 2024 and that any balances given are stated as of December 31, 2024.) Budgeted sales are 1,300 tires for the rst quarter and expected to increase by 100 tires per quartert Cash a. sales are expected to be 40% of total sales, with the remaining 60% of sales on account. b. Finished Goods Inventory on December 31, 2024 consists of 300 tires at $24 each. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; rst quarter sales for 2026 are c. expected be 1,700 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2024, consists of 600 pounds of rubber compound used to d manufacture the tires. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is a. $7.00 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, 2025 is 600 pounds; indirect materials are f. insignicant and not considered for budgeting purposes. 9. Each tire requires 0.30 hours of direct labor, direct labor costs average $16 per hour. h. Variable manufacturing overhead is $1 per tire. Fixed manufacturing overhead includes $3.000 per quarter in depreciation and $8,433 per quarter for other i. costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $10,000 per quarter for salaries; $4.200 per quarter for i. rent; $1,200 per quarter for insurance: and $1,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. Capital expenditures include $20,000 for new manufacturing equipment. to be purchased and paid in the I. rst quarter. i Hm HW Score: 0%, 0 of 8 pts Homework Assignments (Exerc X Do Homework - Rawa Jakkou X Course Hero X + C mathxl.com/Student/PlayerHomework.aspx?homeworkld=580667844&questionld=1&flushed=false&cld=6253128¢erwin=yes Apps YouTube 9 Maps = News M Gmail zoon.us C My Devices | Che... Settings - Security Acct 1090 - Prof. Edwards - Late Start Fall 2020 Rawa Jakkou & | 10/29/20 9:25 PM Homework: Week Six: Homework Mastery Problem Chapter 5 (mana Save Score: 0 of 8 pts 1 of 1 (0 complete) HW Score: 0%, 0 of 8 pts PM5-41A (similar to) Question Help The Grady Tire Company manufa next year by developing a master i Data Table X i More Info X (Click the icon to view the ba Accounts Receivable 45,000 Desired ending Raw Materials Inventory is 50% of the next quarter's direct materials needed for Requirement 1. Prepare Grady's production; desired ending inventory for December 31, 2025 is 600 pounds; indirect materials are cost of goods sold budget, selling Raw Materials Inventory 4,200 f. insignificant and not considered for budgeting purposes. the nearest dollar. Finished Goods Inventory 7,200 g. Each tire requires 0.30 hours of direct labor; direct labor costs average $16 per hour. Begin by preparing the sales buds Total Current Assets $ 98,400 h. Variable manufacturing overhead is $1 per tire. Property, Plant, and Equipment: Fixed manufacturing overhead includes $3,000 per quarter in depreciation and $8,433 per quarter for other costs, such as utilities, insurance, and property taxes Equipment 183,000 Fixed selling and administrative expenses include $10,000 per quarter for salaries; $4,200 per quarter for Less: Accumulated Depreciation (94,000) 89,000 j. rent; $1,200 per quarter for insurance; and $1,000 per quarter for depreciation. Total Assets 187,400 k. Variable selling and administrative expenses include supplies at 1% of sales. Capital expenditures include $20,000 for new manufacturing equipment, to be purchased and paid in the Liabilities 1. first quarter. Budgeted tires to be sold Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quarter following the Current Liabilities: sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible Sales price per unit Accounts Payable $ 17,000 m. accounts are considered insignificant and not considered for budgeting purposes. Stockholders' Equity Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter; Total sales n. December 31, 2024, Accounts Payable is paid in the first quarter of 2025 Common Stock, no par $ 100,000 . Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. Retained Earnings 70,400 p. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred Grady desires to maintain a minimum cash balance of $40,000 and borrows from the local bank as needed Total Stockholders' Equity 170,400 n increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of Total Liabilities and Stockholders' Equity $ 187,400 the quarter when excess funds are available and in increments of $1,000; interest is 4% per year and paid q. at the beginning of the quarter based on the amount outstanding from the previous quarter. Enter any number in the edit fiel 18 parts Print Done Print Done remaining