Homework: Chapter 22 Comprehensive Budgeting Pro 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 da i (Clic Read the Manufacturing Overhead Budget For the Year Ended December 31, 2019 Second Third Quarter Quarter Quarter First Fourth Quarter Total Il Il VOH cost per tire Budgeted VOH Budgeted FOH DO 6 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. parts remaining Clear All mprehensive Budgeting Problem 1 of 1 (1 complete) i Data Table Savin ance Thead cemi Sec Qua 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 S 11,000 and the Print Done Clear All ner Abuse: Ho... e Do Correctional Off... Comprehensive Budgeting Problem 1 of 1 (1 complete) O More Info ge pote (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. e. 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. g. Each tire requires 0.20 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $3 per tire. 1. 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 Tire ctio field Print Done PIISUMU AUUSU HU... DU Correctional Uil... ODell BUSI 1B - Spring 2020 Homework: Chapter 22 Comprehensive Bud Score: 5.47 of 20 pts P22-41A (similar to) The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $80 each. Gavin is plan 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.) Begin by preparing the sales budget. Gavin Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tires to be sold 1.200 1.250 1,300 1,350 5,100 Sales price per unit 80 96,000 Total sales $ 100,000 $ 104,000 $ 408,000 108,000 Prepare the production budget. Review the sales budget you prepared above. Gavin Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Fourth Choose from any list or enter any number in the input fields and then click Check Answer. 14 parts 14 remaining Apps Gmail Time to Wake U... Prisoner Abuse: Ho w Do Correctional Oll. ODell BUSI 1B - Spring 2020 Homework: Chapter 22 Comprehensive Budgeting Score: 5.47 of 20 pts 1 of 1 (1 con % 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.) Prepare the production budget. Review the sales budget you prepared above. Gavin Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Budgeted tires to be sold 1.200 1.250 1,300 Plus: Desired tires in ending inventory Total tires needed 1,825 1,900 1,975 Less: Tires in beginning inventory 100 Budgeted tires to be produced 1.725 1,325 Fourth Quarter Total 5,100 1,350 700 675 700 5,800 2,050 675 650 100 1.375 5.700 Prepare the direct materials budget Review the production budget you prepared above. Gavin Tire Company Choose from any list or enter any number in the input fields and then click Check Answer 14 remaining 14 parts Clear A xrac-4TA (SITiar 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: EE! (Click the icon to view the balance sheet.) other data for (Click the i Read the requis Review the production budget you prepared above. Gavin Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Quarter Quarter Second Third Fourth Quarter Quarter Total Budgeted tires to be produced 1.725 1,275 1,325 1,375 5,700 2 3,450 2.550 2,650 550 2,750 200 11,400 200 530 g 3.080 1,200 Direct materials per tire Direct materials needed for production Plus: Desired direct materials in onding inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials 18 2.670 3.100 9.00 2,950 550 2,400 9.00 $ 21,600 $ 11,600 200 11.400 9.00 102,600 $ ID 2.570 9.00 S 23,130 $ o 18 $ $ e 9.00 24,030 $ S SES Choose from any list or enter any number in the input fields an then cl o 14 parts 14 remaining Clear All U ovo VULPU next year by developing a master budget by quarters. Gavin's balance sheet for December 31, 2018, follows: E: (Click the icon to view the balance sheet.) Rea TICPIC NIE UHOLIQUOT vuuyeu. LYRCI any hours per url amount U WU VOLITIK pravca, AAA, anu Touru awer armour 10 Review the production budget you prepared above. Gavin Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tires to be produced 125 1,275 1,325 1,375 5,700 0.20 0.20 0.20 255 Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour 1,140 265 20 $ 20 $ 275 20 5,500 $ $ 56,900 $ 5,100 $ 5,300 $ Budgeted direct labor cost 22,800 Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manut Review the production budget you prepared above. Review the direct labor budget you prepared above. Gavin Tire Company Choose from any list or enter any number in the input fields and then click Check Answer. 14 parts Clear Al al Homework: Chapter 22 Comprehensive Budgeting Pro 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 da i (Clic Read the Manufacturing Overhead Budget For the Year Ended December 31, 2019 Second Third Quarter Quarter Quarter First Fourth Quarter Total Il Il VOH cost per tire Budgeted VOH Budgeted FOH DO 6 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. parts remaining Clear All mprehensive Budgeting Problem 1 of 1 (1 complete) i Data Table Savin ance Thead cemi Sec Qua 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 S 11,000 and the Print Done Clear All ner Abuse: Ho... e Do Correctional Off... Comprehensive Budgeting Problem 1 of 1 (1 complete) O More Info ge pote (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. e. 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. g. Each tire requires 0.20 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $3 per tire. 1. 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 Tire ctio field Print Done PIISUMU AUUSU HU... DU Correctional Uil... ODell BUSI 1B - Spring 2020 Homework: Chapter 22 Comprehensive Bud Score: 5.47 of 20 pts P22-41A (similar to) The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $80 each. Gavin is plan 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.) Begin by preparing the sales budget. Gavin Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tires to be sold 1.200 1.250 1,300 1,350 5,100 Sales price per unit 80 96,000 Total sales $ 100,000 $ 104,000 $ 408,000 108,000 Prepare the production budget. Review the sales budget you prepared above. Gavin Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Fourth Choose from any list or enter any number in the input fields and then click Check Answer. 14 parts 14 remaining Apps Gmail Time to Wake U... Prisoner Abuse: Ho w Do Correctional Oll. ODell BUSI 1B - Spring 2020 Homework: Chapter 22 Comprehensive Budgeting Score: 5.47 of 20 pts 1 of 1 (1 con % 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.) Prepare the production budget. Review the sales budget you prepared above. Gavin Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Budgeted tires to be sold 1.200 1.250 1,300 Plus: Desired tires in ending inventory Total tires needed 1,825 1,900 1,975 Less: Tires in beginning inventory 100 Budgeted tires to be produced 1.725 1,325 Fourth Quarter Total 5,100 1,350 700 675 700 5,800 2,050 675 650 100 1.375 5.700 Prepare the direct materials budget Review the production budget you prepared above. Gavin Tire Company Choose from any list or enter any number in the input fields and then click Check Answer 14 remaining 14 parts Clear A xrac-4TA (SITiar 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: EE! (Click the icon to view the balance sheet.) other data for (Click the i Read the requis Review the production budget you prepared above. Gavin Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Quarter Quarter Second Third Fourth Quarter Quarter Total Budgeted tires to be produced 1.725 1,275 1,325 1,375 5,700 2 3,450 2.550 2,650 550 2,750 200 11,400 200 530 g 3.080 1,200 Direct materials per tire Direct materials needed for production Plus: Desired direct materials in onding inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials 18 2.670 3.100 9.00 2,950 550 2,400 9.00 $ 21,600 $ 11,600 200 11.400 9.00 102,600 $ ID 2.570 9.00 S 23,130 $ o 18 $ $ e 9.00 24,030 $ S SES Choose from any list or enter any number in the input fields an then cl o 14 parts 14 remaining Clear All U ovo VULPU next year by developing a master budget by quarters. Gavin's balance sheet for December 31, 2018, follows: E: (Click the icon to view the balance sheet.) Rea TICPIC NIE UHOLIQUOT vuuyeu. LYRCI any hours per url amount U WU VOLITIK pravca, AAA, anu Touru awer armour 10 Review the production budget you prepared above. Gavin Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total Budgeted tires to be produced 125 1,275 1,325 1,375 5,700 0.20 0.20 0.20 255 Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour 1,140 265 20 $ 20 $ 275 20 5,500 $ $ 56,900 $ 5,100 $ 5,300 $ Budgeted direct labor cost 22,800 Prepare the manufacturing overhead budget. (Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manut Review the production budget you prepared above. Review the direct labor budget you prepared above. Gavin Tire Company Choose from any list or enter any number in the input fields and then click Check Answer. 14 parts Clear Al al