need the first picture blank spaces answered. Just provided other pictures for the information.
Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, X,XX, and round all other amounts to the nearest whole number.) Review the production budget you prepared above. Review the production budget you prepared above Prepare the direct labor budget. (Enter any hours per unit amounts to two docimal places, XX, and round all other amounts to the nearest whole number.) c. Desired ending Finished Goods Inventory is 20% of the next quarter's sales; first quarter sales for 2026 are expected be 2,200 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31,2024 , consists of 600 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $5.00 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, 2025 is 600 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.60 hours of direct labor; direct labor costs average $25 per hour. h. Variable manufacturing overhead is $5 per tire. 1. Fixed manufacturing overhead includes $5,500 per quarter in depreciation and $13,159 per quarter for other costs, such as utilities, insurance, and property taxes. 1. Fixed selling and administrative expenses include $13,000 per quarter for salaries; $1,800 per quarter for rent; $1,350 per quarter for insurance; and $2,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. 1. Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 75% in the quarter of the sale and 25% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter; 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 $4,000 per quarter and is paid in the quarter incurred. Current Assets: The Grady Tire Company manufactures racing tires for bicycles. Grady sells tires for $70 each. Grady is planning for the next year by developing a master budget by quarters. Grady's balance sheet for December 31, 2024, follows: (Click the icon to view the balance sheet.) Other data for Grady Tire Company: (Click the icon to view the other dat: Read the requirements. Prepare the production budget. Review the sales budget you prepared above. Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, X,XX, and round all other amounts to the nearest whole number.) Review the production budget you prepared above. Review the production budget you prepared above Prepare the direct labor budget. (Enter any hours per unit amounts to two docimal places, XX, and round all other amounts to the nearest whole number.) c. Desired ending Finished Goods Inventory is 20% of the next quarter's sales; first quarter sales for 2026 are expected be 2,200 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31,2024 , consists of 600 pounds of rubber compound used to manufacture the tires. e. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $5.00 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, 2025 is 600 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.60 hours of direct labor; direct labor costs average $25 per hour. h. Variable manufacturing overhead is $5 per tire. 1. Fixed manufacturing overhead includes $5,500 per quarter in depreciation and $13,159 per quarter for other costs, such as utilities, insurance, and property taxes. 1. Fixed selling and administrative expenses include $13,000 per quarter for salaries; $1,800 per quarter for rent; $1,350 per quarter for insurance; and $2,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. 1. Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 75% in the quarter of the sale and 25% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter; 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 $4,000 per quarter and is paid in the quarter incurred. Current Assets: The Grady Tire Company manufactures racing tires for bicycles. Grady sells tires for $70 each. Grady is planning for the next year by developing a master budget by quarters. Grady's balance sheet for December 31, 2024, follows: (Click the icon to view the balance sheet.) Other data for Grady Tire Company: (Click the icon to view the other dat: Read the requirements. Prepare the production budget. Review the sales budget you prepared above
