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Homework: Week Six: Homework Mastery Problem Chapter 5 (mana HW Score: 0%, 0 of 8 pts Question Help O Score: 0 of 8 pts 1 of 1 complete PM5-41A (similar to) The Grady Tre Company manufactures racing tires for bicycles. Grady sels tres for 505 each. Grady is planning for the other data for Grody Tre Company next year by developing a master budget by quarters Grady's balance sheet for December 31, 2024, follows: Click the icon to view the other data) Im Click the icon to view the balance sheet) Read the mairements Requirement 1. Prepare Gray's operating budget and cash budget for 2025 by quarter. Required schedules and budgets include: sales budget, production budget direct materiais budget direct labor budget, manufacturing overhead budget cost of goods sold budget, seling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget Manufacturing overhead costs are located based on direct labor hours. Round all calculations to the nearest dolar Begin by preparing the sales budget. Requirements Grady Tire Company Sales Budget For the Year Ended December 31, 2025 1. Prepare Grady's operating budget and cash budget for 2025 by Quartet Required schedules and budgets include ale budget production budget First Second Third Fourth direct material budget director budget, manufacturing overhead budget Quarter Quarter Quarter Quarter Total schedule of cash receipts schedule of cash payments, and cash budget cost of goods sold budget, Meling and administrative expense budget Budgeted tires to be sold Manufacturing overhead cows are located based on director hours Round all coins to the nearest dollar Sans price per unit 2. Prepare Grady's annual financial budget for 2005, including budgeted income statement and budgeted balance sheet Total sales Print Done Enter any number in the edit fields and then click Check Answer Clear All Final Check 18 Part remaining MacBook Pro 999 og A $ 4 % 5 & 7 * CO 2 0 6 3 ween JL. HUWUR Mastery Problem Chapter 5 (mana Save 1 of 1 (0 complete) HW Score: 0%, 0 of 8 p More Info Data Table ar mas he rad Grady Tire Company Balance Sheet December 31, 2024 Assets Current Assets Cash $ 42.000 45.000 (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) Budgeted sales are 1,300 tires for the first quarter and expected to increase by 100 tires per quarter 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 cach. Desired ending Finished Goods Inventory is 40% of the next quarter's sales first 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 .. $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 1. insignificant 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. Forced manufacturing overhead includes $3,000 per quarter in depreciation and $8,433 per quarter for other L costs, such as the insurance, and property taxes. Forced seling and administrative expenses include $10,000 per quarter for salaries: $4,200 per quarter for 1 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 1 first quarter 4200 7,200 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment Equipment Less: Accumulated Depreciation 5 98.400 183,000 (94.000) 89.000 Total Assets $ 187,400 Liabilities Current Liabilities Arab dit Print Done Print Done MacBook Pro 80 000 FC DU FB DD 3 F7 1 of 1 (0 complete) HW Score: 0%, 0 of 8 More Info Data Table Accounts Receivable 45,000 4.200 7.200 98.400 Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment Equipment Less: Acoumulated Depreciation 183,000 (94.000) 89.000 187,400 Total Assets 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 1. insignificant and not considered for budgeting purposes. 9. Each tire requires 0.30 hours of direct labor, direct labor costs average $10 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 costs, such as utilities, insurance, and property taxes Fixed selling and administrative expenses include $10,000 per quarter for salaries; 34,200 per quarter for rent: $1.200 per quarter for insurance, and $1,000 per quarter for depreciation. Variable seling 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 Lfirst quarter Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quarter following the sale: December 31, 2024. Accounts Receivable is received in the first quarter of 2025, uncollectible m. accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter: n. 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 $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 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 4% per year and paid 4. at the beginning of the quarter based on the amount outstanding from the previous quarter Liabilities Current Liabilities: Accounts Payable $ 17,000 Stockholders' Equity $ 100,000 70,400 Common Stock, no par Retained Earnings Total Stockholders' Equity 170,400 $ 187,400 Total Liabilities and Stockholders' Equity Print Done Print Done MacBook Pro DI DD do 30 008 FS 76 tires for $85 each. Grady is planning for the et for December 31, 2024, follows: Other data for Grady Tire Company: (Click the icon to view the other data Read the requirements. Requirements 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. 2. Prepare Grady's annual financial budget for 2025, including budgeted income statement and budgeted balance sheet. 201 Th Qua Print Done then click Check Answer. Clear All ework Mastery Problem Chapter 5 (mana 1 of 1 (1 complete) More Info (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) Budgeted sales are 1,300 tires for the first quarter and expected to increase by 100 tires per quarter. 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; first 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 e. $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 1. insignificant and not considered for budgeting purposes. D. 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 1 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 first quarter 1 Print Done D Raw Jakkou X + work.aspx?homeworkld=580667844&questionid=1&flushed=false&cld=6253128¢erwin=yes all zoon.us C My Devices Che... Settings - Security mework Mastery Problem Chapter 5 (mana 1 of 1 (1 complete) More Info ly 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. insignificant 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 S1 per tire. Foxed manufacturing overhead includes $3,000 per quarter in depreciation and $8,433 per quarter for other costs, such as utilities, insurance, and property taxes. Faxed selling and administrative expenses include $10,000 per quarter for salaries: 54,200 per quarter for 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 Lfirst quarter Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quarter following the sale: December 31, 2024, Accounts Receivable is received in the first quarter of 2025, uncollectible m. accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter, n. 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 $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 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 4% per year and paid 9 at the beginning of the quarter based on the amount outstanding from the previous quarter. ! So Ded Sec Qua tfield Print Done - i Data Table BA med Grady Tire Company Balance Sheet December 31, 2024 Assets 42,000 45,000 4,200 7,200 Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities 98.400 Eget 31,20 TH 183,000 (94,000) 89,000 Qur $ 187,400 Current Liabilities: Annus Pavabla 17 ann and then a Print Done 000 000 00 k Mastery Problem Chapter 5 (mana 1 of 1 (1 complete) Data Table $ 98,400 89,000 187,400 Accounts Receivable 45,000 Raw Materials Inventory 4,200 7,200 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment 183,000 (94,000) Less: Accumulated Depreciation $ Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par $ 100,000 70,400 Retained Earnings Total Stockholders' Equity $ Total Liabilities and Stockholders' Equity 17.000 170,400 187,400 Print Done Homework: Week Six: Homework Mastery Problem Chapter 5 (mana HW Score: 0%, 0 of 8 pts Question Help O Score: 0 of 8 pts 1 of 1 complete PM5-41A (similar to) The Grady Tre Company manufactures racing tires for bicycles. Grady sels tres for 505 each. Grady is planning for the other data for Grody Tre Company next year by developing a master budget by quarters Grady's balance sheet for December 31, 2024, follows: Click the icon to view the other data) Im Click the icon to view the balance sheet) Read the mairements Requirement 1. Prepare Gray's operating budget and cash budget for 2025 by quarter. Required schedules and budgets include: sales budget, production budget direct materiais budget direct labor budget, manufacturing overhead budget cost of goods sold budget, seling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget Manufacturing overhead costs are located based on direct labor hours. Round all calculations to the nearest dolar Begin by preparing the sales budget. Requirements Grady Tire Company Sales Budget For the Year Ended December 31, 2025 1. Prepare Grady's operating budget and cash budget for 2025 by Quartet Required schedules and budgets include ale budget production budget First Second Third Fourth direct material budget director budget, manufacturing overhead budget Quarter Quarter Quarter Quarter Total schedule of cash receipts schedule of cash payments, and cash budget cost of goods sold budget, Meling and administrative expense budget Budgeted tires to be sold Manufacturing overhead cows are located based on director hours Round all coins to the nearest dollar Sans price per unit 2. Prepare Grady's annual financial budget for 2005, including budgeted income statement and budgeted balance sheet Total sales Print Done Enter any number in the edit fields and then click Check Answer Clear All Final Check 18 Part remaining MacBook Pro 999 og A $ 4 % 5 & 7 * CO 2 0 6 3 ween JL. HUWUR Mastery Problem Chapter 5 (mana Save 1 of 1 (0 complete) HW Score: 0%, 0 of 8 p More Info Data Table ar mas he rad Grady Tire Company Balance Sheet December 31, 2024 Assets Current Assets Cash $ 42.000 45.000 (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) Budgeted sales are 1,300 tires for the first quarter and expected to increase by 100 tires per quarter 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 cach. Desired ending Finished Goods Inventory is 40% of the next quarter's sales first 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 .. $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 1. insignificant 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. Forced manufacturing overhead includes $3,000 per quarter in depreciation and $8,433 per quarter for other L costs, such as the insurance, and property taxes. Forced seling and administrative expenses include $10,000 per quarter for salaries: $4,200 per quarter for 1 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 1 first quarter 4200 7,200 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment Equipment Less: Accumulated Depreciation 5 98.400 183,000 (94.000) 89.000 Total Assets $ 187,400 Liabilities Current Liabilities Arab dit Print Done Print Done MacBook Pro 80 000 FC DU FB DD 3 F7 1 of 1 (0 complete) HW Score: 0%, 0 of 8 More Info Data Table Accounts Receivable 45,000 4.200 7.200 98.400 Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment Equipment Less: Acoumulated Depreciation 183,000 (94.000) 89.000 187,400 Total Assets 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 1. insignificant and not considered for budgeting purposes. 9. Each tire requires 0.30 hours of direct labor, direct labor costs average $10 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 costs, such as utilities, insurance, and property taxes Fixed selling and administrative expenses include $10,000 per quarter for salaries; 34,200 per quarter for rent: $1.200 per quarter for insurance, and $1,000 per quarter for depreciation. Variable seling 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 Lfirst quarter Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quarter following the sale: December 31, 2024. Accounts Receivable is received in the first quarter of 2025, uncollectible m. accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter: n. 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 $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 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 4% per year and paid 4. at the beginning of the quarter based on the amount outstanding from the previous quarter Liabilities Current Liabilities: Accounts Payable $ 17,000 Stockholders' Equity $ 100,000 70,400 Common Stock, no par Retained Earnings Total Stockholders' Equity 170,400 $ 187,400 Total Liabilities and Stockholders' Equity Print Done Print Done MacBook Pro DI DD do 30 008 FS 76 tires for $85 each. Grady is planning for the et for December 31, 2024, follows: Other data for Grady Tire Company: (Click the icon to view the other data Read the requirements. Requirements 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. 2. Prepare Grady's annual financial budget for 2025, including budgeted income statement and budgeted balance sheet. 201 Th Qua Print Done then click Check Answer. Clear All ework Mastery Problem Chapter 5 (mana 1 of 1 (1 complete) More Info (Unless otherwise noted, assume all of the following events occurred during 2024 and that any balances given are stated as of December 31, 2024.) Budgeted sales are 1,300 tires for the first quarter and expected to increase by 100 tires per quarter. 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; first 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 e. $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 1. insignificant and not considered for budgeting purposes. D. 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 1 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 first quarter 1 Print Done D Raw Jakkou X + work.aspx?homeworkld=580667844&questionid=1&flushed=false&cld=6253128¢erwin=yes all zoon.us C My Devices Che... Settings - Security mework Mastery Problem Chapter 5 (mana 1 of 1 (1 complete) More Info ly 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. insignificant 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 S1 per tire. Foxed manufacturing overhead includes $3,000 per quarter in depreciation and $8,433 per quarter for other costs, such as utilities, insurance, and property taxes. Faxed selling and administrative expenses include $10,000 per quarter for salaries: 54,200 per quarter for 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 Lfirst quarter Cash receipts for sales on account are 80% in the quarter of the sale and 20% in the quarter following the sale: December 31, 2024, Accounts Receivable is received in the first quarter of 2025, uncollectible m. accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter, n. 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 $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 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 4% per year and paid 9 at the beginning of the quarter based on the amount outstanding from the previous quarter. ! So Ded Sec Qua tfield Print Done - i Data Table BA med Grady Tire Company Balance Sheet December 31, 2024 Assets 42,000 45,000 4,200 7,200 Current Assets: Cash Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation Total Assets Liabilities 98.400 Eget 31,20 TH 183,000 (94,000) 89,000 Qur $ 187,400 Current Liabilities: Annus Pavabla 17 ann and then a Print Done 000 000 00 k Mastery Problem Chapter 5 (mana 1 of 1 (1 complete) Data Table $ 98,400 89,000 187,400 Accounts Receivable 45,000 Raw Materials Inventory 4,200 7,200 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment 183,000 (94,000) Less: Accumulated Depreciation $ Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par $ 100,000 70,400 Retained Earnings Total Stockholders' Equity $ Total Liabilities and Stockholders' Equity 17.000 170,400 187,400 Print Done