Homework: Chapter 22 Comprehensiv Score: 14.76 of 20 pts P22-41A (similar to) The Gridley Tire Company manufactures racing tires for bloyoles. Gridley sells tires for $80 ea by developing a master budget by quarters. Gridley's balance sheet for December 31, 2018, f (Click the icon to view the balance sheet.) First Quarter Beginning cash balance Cash receipts Cash available Cash payments Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (de ciency) Financing Barrying Principal tepayments Toalects of landing Ending cash bulance Enter any number in the fields and then click Check Answer 6 mework - Chapter 22 Co X Homework.aspx?homeworkld-591123438&questionId=1&flushed=true&cid=64131158 centerwinyes Comprehensive Budgeting Problem 1 of 1 (1 complete bicy anco Reference Cash Receipts from Customers Total S Total sales First Second Third Fourth Quarter Quarter Quarter Quarter 128.000 $144,000 $100.000 $ 170.000 First Second Third Fourth Quarter Quarter Quarter Quarter 508,000 Total Cash Receipts from Customers Acourselvbi balance December 31, 2010 12.000 51.200 57 000 ey ist Or-Credit sales, collection of sales in 1st mit allen of Otras in 2 ndo End Firs Quar Red Clocolection to 22 2nd rods tection at on and Cash Sido-redes colonia Sed Or-Creditcoinen that als the hection of our $19.200 57.000 04.000 521,600 64.000 72.000 534000 70.400 200 s400 141,000 5 167.00 6.000 S 13.000 Totalcarce rom us Accounts Receivable bac. December 31, 2017 hock Done & flushed true&cid=6413115¢erwin-yes comprehensive Budgeting Problem 1 of 1 (1 complete Reference UUT Total sales Total EGUT Quarter Quarter Quarter Quarter 128,000 $144,000 $ 180,000 $ 178,000 $ First Second Third Fourth Quarter Quarter Quarter Quarter 508,000 Total Cash Receipts from Customers Account Receivable bon December 31, 2018 1st-Cash sale ist Credit salos, collection of our sales in Ort 1st Or-Credt sales, collection of our sales in Ot2 and credit.coction of our 2 2nd Credit scobedom of 2 in 3 Brdr-Cash 3rd Git-Croite coletion of 33 3rd Credit sales collection of an 32.000 51.260 57.600 $ 19,200 57.600 4.800 15 21,600 54000 72.000 24.000 70.400 79200 500,000 5 141.500 $ 151,600 173.000 613,300 41 -Cracon otorino Totalcarceiros Accounts Receivable balance December 31, 2015 in of 2000 20400 Print Done Cash Payments Total Total direct materials purchases First Second Third Fourth Quarter Quarter Quarter Quarter $ 34,720 S 27,160 S 29,960S 28,560 S First Second Third Fourth Quarter Quarter Quarter Quarter 120,400 Total 10,000 17.360 S Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Qur-Qtr. 1 direct material purchases paid in Qtr. 1 1st Qtr - Qtr. 1 direct material purchases paid in Qtr. 2 2nd Qu-Otr. 2 direct material purchases paid in Q2 2nd QrQtr. 2 direct material purchases pald in QU: 3 3rd Qur. -Qtr. 3 direct material purchases paid in Qt3 3rd Otr-Qlr: 3 direct material purchases paid in Qir 4 4th air-tr. 4 direct material purchases paid in Qtr 4 Total payments for direct materials 17,360 13,580 S 13,580 14,980 S 14,980 14,280 29,260 27,360 30.940 28,560 116,120 Direct Labor: Total payments for direct labor 22,540 18,620 20,580 22,540 84,280 Manufacturing Overhead: A 13 Prins One mprehensive Budgeting Problem 1 of 1 (1 complete) i Reference 1.900 2,100 2.300 Variable manufacturing overhead Utilities, insurance, property taxes Total payments for manufacturing overhead 2.300 68,100 70,400 8,600 272,400 68,100 68.100 70,000 68.100 70,200 70,400 281,000 9,500 9,500 9,500 Selling and Administrative Expenses: Salaries Expense Rent Expense Insurance Expense Supplies Expense Total payments for Selling and Admin. expenses 9.500 1,800 38,000 1.800 1,350 1,800 1.350 1,600 1,800 1,350 1,350 1.280 1.440 7.200 5,400 6,080 56,680 13.930 1,780 14,410 14,090 14,250 Income Taxes: Total payments for income taxes 2,000 2,000 2.000 2.000 8,000 Capital Expenditures: Total payments for capital expenditures 40.000 40,000 Total cash payments (before interest) 176,230 S 135,650 S 135,590 S 138,610 S 586,080 Accounts Payable balance, December 31, 2019 4th 4 drac material purchases said in Q1 of 2020 14280 Print Done eys Ded More Info 280 zerg epayr pan mbel 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, 2018 consists of 200 tires at $28 each Desired ending Finished Goods Inventory is 50% of the next quarter's sales, first quarter sales for 2020 are a expected be 2.400 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2018, consists of 400 pounds of rubber compound used to d. manufacture the tires Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is e. $7.00 per pound. 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 400 pounds, indirect materials are f. insignificant and not considered for budgeting purposes. g. Each tire requires 0.70 hours of direct labor direct labor costs average $14 per hour h. Variable manufacturing overhead is 51 per tire, Fixed manufacturing overhead includes $5,000 per quarter in depreciation and $68.100 per quarter for other costs, such as utilities. Insurance, and property taxes Fixed selling and administrative expenses include $9.500 per quarter for salaries: $1800 per quarter for rent: $1,350 per quarter for insurance and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. Capital expenditures include $40,000 for new manufacturing equipment to be purchased and paid in the first quarter. Cash receipts for sales on account are 75% in the quarter of the sale and 25% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 2019: uncollectible m accounts are considered insignificant and not considered for Budgeting purposes Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter: n. December 31, 2018. Accounts Payable is paid in the first quarter of 2019, 0. Direct labor, manufacturing overhead and selling and administrative costs are paid in the quarter incurred. D. Income tax expense is projected at $2.000 per quarter and is paid in the quarter incurred. Gridley desires to maintain a minimum cush balance of S60000 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 109 per 9. year and paid at the beginning of the quarter based on the amount outstanding from the previous quartor Print Dane Die Homework: Chapter 22 Comprehensiv Score: 14.76 of 20 pts P22-41A (similar to) The Gridley Tire Company manufactures racing tires for bloyoles. Gridley sells tires for $80 ea by developing a master budget by quarters. Gridley's balance sheet for December 31, 2018, f (Click the icon to view the balance sheet.) First Quarter Beginning cash balance Cash receipts Cash available Cash payments Capital expenditures Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Income taxes Interest expense Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (de ciency) Financing Barrying Principal tepayments Toalects of landing Ending cash bulance Enter any number in the fields and then click Check Answer 6 mework - Chapter 22 Co X Homework.aspx?homeworkld-591123438&questionId=1&flushed=true&cid=64131158 centerwinyes Comprehensive Budgeting Problem 1 of 1 (1 complete bicy anco Reference Cash Receipts from Customers Total S Total sales First Second Third Fourth Quarter Quarter Quarter Quarter 128.000 $144,000 $100.000 $ 170.000 First Second Third Fourth Quarter Quarter Quarter Quarter 508,000 Total Cash Receipts from Customers Acourselvbi balance December 31, 2010 12.000 51.200 57 000 ey ist Or-Credit sales, collection of sales in 1st mit allen of Otras in 2 ndo End Firs Quar Red Clocolection to 22 2nd rods tection at on and Cash Sido-redes colonia Sed Or-Creditcoinen that als the hection of our $19.200 57.000 04.000 521,600 64.000 72.000 534000 70.400 200 s400 141,000 5 167.00 6.000 S 13.000 Totalcarce rom us Accounts Receivable bac. December 31, 2017 hock Done & flushed true&cid=6413115¢erwin-yes comprehensive Budgeting Problem 1 of 1 (1 complete Reference UUT Total sales Total EGUT Quarter Quarter Quarter Quarter 128,000 $144,000 $ 180,000 $ 178,000 $ First Second Third Fourth Quarter Quarter Quarter Quarter 508,000 Total Cash Receipts from Customers Account Receivable bon December 31, 2018 1st-Cash sale ist Credit salos, collection of our sales in Ort 1st Or-Credt sales, collection of our sales in Ot2 and credit.coction of our 2 2nd Credit scobedom of 2 in 3 Brdr-Cash 3rd Git-Croite coletion of 33 3rd Credit sales collection of an 32.000 51.260 57.600 $ 19,200 57.600 4.800 15 21,600 54000 72.000 24.000 70.400 79200 500,000 5 141.500 $ 151,600 173.000 613,300 41 -Cracon otorino Totalcarceiros Accounts Receivable balance December 31, 2015 in of 2000 20400 Print Done Cash Payments Total Total direct materials purchases First Second Third Fourth Quarter Quarter Quarter Quarter $ 34,720 S 27,160 S 29,960S 28,560 S First Second Third Fourth Quarter Quarter Quarter Quarter 120,400 Total 10,000 17.360 S Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Qur-Qtr. 1 direct material purchases paid in Qtr. 1 1st Qtr - Qtr. 1 direct material purchases paid in Qtr. 2 2nd Qu-Otr. 2 direct material purchases paid in Q2 2nd QrQtr. 2 direct material purchases pald in QU: 3 3rd Qur. -Qtr. 3 direct material purchases paid in Qt3 3rd Otr-Qlr: 3 direct material purchases paid in Qir 4 4th air-tr. 4 direct material purchases paid in Qtr 4 Total payments for direct materials 17,360 13,580 S 13,580 14,980 S 14,980 14,280 29,260 27,360 30.940 28,560 116,120 Direct Labor: Total payments for direct labor 22,540 18,620 20,580 22,540 84,280 Manufacturing Overhead: A 13 Prins One mprehensive Budgeting Problem 1 of 1 (1 complete) i Reference 1.900 2,100 2.300 Variable manufacturing overhead Utilities, insurance, property taxes Total payments for manufacturing overhead 2.300 68,100 70,400 8,600 272,400 68,100 68.100 70,000 68.100 70,200 70,400 281,000 9,500 9,500 9,500 Selling and Administrative Expenses: Salaries Expense Rent Expense Insurance Expense Supplies Expense Total payments for Selling and Admin. expenses 9.500 1,800 38,000 1.800 1,350 1,800 1.350 1,600 1,800 1,350 1,350 1.280 1.440 7.200 5,400 6,080 56,680 13.930 1,780 14,410 14,090 14,250 Income Taxes: Total payments for income taxes 2,000 2,000 2.000 2.000 8,000 Capital Expenditures: Total payments for capital expenditures 40.000 40,000 Total cash payments (before interest) 176,230 S 135,650 S 135,590 S 138,610 S 586,080 Accounts Payable balance, December 31, 2019 4th 4 drac material purchases said in Q1 of 2020 14280 Print Done eys Ded More Info 280 zerg epayr pan mbel 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, 2018 consists of 200 tires at $28 each Desired ending Finished Goods Inventory is 50% of the next quarter's sales, first quarter sales for 2020 are a expected be 2.400 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2018, consists of 400 pounds of rubber compound used to d. manufacture the tires Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is e. $7.00 per pound. 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 400 pounds, indirect materials are f. insignificant and not considered for budgeting purposes. g. Each tire requires 0.70 hours of direct labor direct labor costs average $14 per hour h. Variable manufacturing overhead is 51 per tire, Fixed manufacturing overhead includes $5,000 per quarter in depreciation and $68.100 per quarter for other costs, such as utilities. Insurance, and property taxes Fixed selling and administrative expenses include $9.500 per quarter for salaries: $1800 per quarter for rent: $1,350 per quarter for insurance and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. Capital expenditures include $40,000 for new manufacturing equipment to be purchased and paid in the first quarter. Cash receipts for sales on account are 75% in the quarter of the sale and 25% in the quarter following the sale: December 31, 2018, Accounts Receivable is received in the first quarter of 2019: uncollectible m accounts are considered insignificant and not considered for Budgeting purposes Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter: n. December 31, 2018. Accounts Payable is paid in the first quarter of 2019, 0. Direct labor, manufacturing overhead and selling and administrative costs are paid in the quarter incurred. D. Income tax expense is projected at $2.000 per quarter and is paid in the quarter incurred. Gridley desires to maintain a minimum cush balance of S60000 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 109 per 9. year and paid at the beginning of the quarter based on the amount outstanding from the previous quartor Print Dane Die