HI! Apps G mail 07 It's Time to Wake U Prisoner Abuse Home De Correctional Off ODell BUSI 1B - Spring 2020 Homework: Chapter 22 Comprehensive Budgeting Problem Score: 5.47 of 20 pts 1 of 1 (1 complete) P22-41A (similar to) The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $80 each. Gavin is planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December 31, 2018, follows: :: (Click the icon to view the balance sheet.) Other data for Gavin Tire Company (Click the icon to view the other data.) Read the requirements Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Quarter Third Fourth Quarter VOH cost per tire Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. TpIUIUI IUIVU Duugely Problem 1 of 1 (1 complete) G Data Table Savin sells ance shee head Bug cember 3 Second Quarter Gavin Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ Accounts Receivable Raw Materials Inventory 74,000 25,000 1,800 3,000 $ 103,800 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 139,000 (39,000) $ 100,000 203,800 Total Assets Liabilities Current Liabilities: Accounts Payable $ 11,000 and then Print Done Comprehensive Budgeting Problem 1 of 1 (1 complete) More Info syald vin's ing nded ter (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 1.200 tires for the first quarter and expected to increase by 50 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 100 tires at $30 each. c. Desired ending Finished Goods Inventory is 50% of the next quarter's sales, first quarter sales for 2020 are expected be 1,400 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 200 pounds of rubber compound used to manufacture the tires. . Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $9.00 per pound. f. Desired ending Raw Materials Inventory is 20% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 200 pounds; indirect materials are insignificant and not considered for budgeting purposes. 9. Each tire requires 0.20 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $3 per tire. i. Fixed manufacturing overhead includes $2,500 per quarter in depreciation and $1,205 per quarter for other costs, such as utilities, insurance, and property taxes j. Fixed selling and administrative expenses include $13,000 per quarter for salaries: $3,600 per quarter for rent: $900 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. I. Capital expenditures include $10,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 85% in the quarter of the sale and 15% in the quarter following the ut field Pris Print Done HI! Apps G mail 07 It's Time to Wake U Prisoner Abuse Home De Correctional Off ODell BUSI 1B - Spring 2020 Homework: Chapter 22 Comprehensive Budgeting Problem Score: 5.47 of 20 pts 1 of 1 (1 complete) P22-41A (similar to) The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $80 each. Gavin is planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December 31, 2018, follows: :: (Click the icon to view the balance sheet.) Other data for Gavin Tire Company (Click the icon to view the other data.) Read the requirements Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Quarter Third Fourth Quarter VOH cost per tire Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Choose from any list or enter any number in the input fields and then click Check Answer. TpIUIUI IUIVU Duugely Problem 1 of 1 (1 complete) G Data Table Savin sells ance shee head Bug cember 3 Second Quarter Gavin Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ Accounts Receivable Raw Materials Inventory 74,000 25,000 1,800 3,000 $ 103,800 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 139,000 (39,000) $ 100,000 203,800 Total Assets Liabilities Current Liabilities: Accounts Payable $ 11,000 and then Print Done Comprehensive Budgeting Problem 1 of 1 (1 complete) More Info syald vin's ing nded ter (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 1.200 tires for the first quarter and expected to increase by 50 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 100 tires at $30 each. c. Desired ending Finished Goods Inventory is 50% of the next quarter's sales, first quarter sales for 2020 are expected be 1,400 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 200 pounds of rubber compound used to manufacture the tires. . Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $9.00 per pound. f. Desired ending Raw Materials Inventory is 20% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 200 pounds; indirect materials are insignificant and not considered for budgeting purposes. 9. Each tire requires 0.20 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $3 per tire. i. Fixed manufacturing overhead includes $2,500 per quarter in depreciation and $1,205 per quarter for other costs, such as utilities, insurance, and property taxes j. Fixed selling and administrative expenses include $13,000 per quarter for salaries: $3,600 per quarter for rent: $900 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. I. Capital expenditures include $10,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 85% in the quarter of the sale and 15% in the quarter following the ut field Pris Print Done