On the Cash Receipts for Customers, I'm not sure if I am off to a correct start, but I have gotten myself confused

The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Other data for Giseppe Tire Company: (Click the icon to view the other data.) Read the requirements. Requirement 1. Prepare Giseppe's operating budget and cash budget for 2019 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. Begin by preparing the sales budget. Giseppe 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 1,100 1,300 1,500 1,700 5,600 85 $ 85 85 85 $ 85 Sales price per unit $ $ 93,500 | $ 110,500 $ 127,500 || $ 144,500 $ A Total sales 476,000 The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Other data for Giseppe Tire Company: (Click the icon to view the other data.) Read the requirements. Prepare the production budget. Review the sales budget you prepared above. Giseppe Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold 1,100 1,300 1,500 1,700 5,600 650 Desired tires in ending inventory 750 850 Plus: 950 950 Total tires needed 1,750 2,050 2,350 2,650 6,550 300 Tires in beginning inventory 650 750 850 Less: 300 1,450 1,400 1,600 1,800 6,250 Budgeted tires to be produced The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: |(Click the icon to view the balance sheet.) ( Other data for Giseppe Tire Company i (Click the icon to view the other data.) Read the requirements. Total 8,250 Prepare the direct materials budget. Review the production budget you prepared above. Giseppe Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Budgeted tires to be produced 1,450 1,400 1,600 1,800 Direct materials per tire 2 2 2 2 2 Direct materials needed for production 2,900 2,800 3,200 3,800 Plus: Desired direct materials in ending inventory : 1,120 1,280 1,440 600 Total direct materials needed 4,020 4,080 4,640 4,200 Less: Direct materials in beginning inventory 600 1,120 1,280 1.440 Budgeted purchases of direct materials 3,420 2.960 3,360 2.760 Direct materials cost per pound $ 5.50 $ 5.50 $ 5.50 $ 5.50 $ $ 18,810 | $ 16,280 $ 18,480 | $ Budgeted cost of direct materials 15,180 $ 2 12,500 600 13,100 600 12,500 5.50 68,750 The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Other data for Giseppe Tire Company: (Click the icon to view the other data.) Read the requirements. 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. Giseppe Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total 1,450 1,400 1,600 1,800 6,250 Budgeted tires to be produced Direct labor hours per unit Direct labor hours needed for production 0.60 0.60 0.60 0.60 0.60 870 840 960 1,080 3,750 Direct labor cost per hour 20 $ 20 $ 20 || $ 20 $ 20 $ 17,400 || $ 16,800 || $ 19,200 $ 21,600 || $ 75,000 Budgeted direct labor cost The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning Other data for Giseppe Tire Company for the next year toy developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: (Click the icon to view the other data.) (Click the Icon to view the balance sheet.) Read the requirements. Prepare the manufacturing overhead budget. (Abbreviations used: VOH = varlable manufacturing overhead; FOH = fixed manufacturing overhead.) Review the production budget you prepared above. Review the direct labor budget you prepared above. Giseppe Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced 1.450 1,400 1,600 1.800 6,250 VOH cost per tire S 5$ 5 S S 5 S 5 $ 5 Budgeted VOH S 7,250 $ 7,000 S 8,000 S 9.000 $ 31,250 Budgeted FOH Depreciation 2.500 2,500 2,500 2,500 10,000 Utilities, insurance, property taxes 22,500 22,500 , , 22,500 22,500 90,000 25,000 25,000 Total budgeted FOH 25,000 25,000 $ 32,250 $ $ 32,000 S 33,000 S 34,000 $ 131.250 Budgeted manufacturing overhead costs 100,000 870 840 960 1,080 3,750 Direct labor hours Budgeted manufacturing overhead costs $ 131,250 35 $ Predetermined overhead allocation rate The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for 585 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) . Other data for Giseppe Tire Company: (Click the icon to view the other data.) Read the requirements, Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per tire for 2019. (Round all amounts to the nearest cent.) Direct materials cost per tire 11.00 Direct labor cost per tire 12.00 S Manufacturing overhead cost per tire 21.00 S 44.00 Total projected manufacturing cost per tire for 2019 Now prepare the cost of goods sold budget Review the sales budget you prepared above. Review the production budget you prepared above. Glseppe Tire Company Cost of Goods Sold Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Beginning inventory $ $ 10,500 $ 10,500 Tires produced and sold in 2019 35,200 S 57,200 $ 66,000 $ 74,800 233 200 $ 45,700 S Total budgeted cost of goods sold 57,200 $ 66,000 $ 74,800 $ $ 243,700 The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $85 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Other data for Giseppe Tire Company: (Click the icon to view the other data.) Read the requirements. Prepare the selling and administrative expense budget. Review the sales budget you prepared above. Giseppe Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Supplies Expense $ 2,210 || $ 2,550 || $ 2,890 || $ 9,520 Salaries Expense 1,870 || $ 9,000 1,500 9,000 9,000 9,000 36,000 1,500 1,500 6,000 Rent Expense Insurance Expense 1,500 1,650 1,650 1,650 1,650 6,600 Depreciation Expense 1,000 1,000 1,000 1,000 4,000 15,020 || $ 15,360 | $ 15,700 | $ 16,040 | $ 62,120 Total budgeted selling and administrative expense The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for S85 each. Giseppe is planning Other data for Giseppe Tire Company for the next year by developing a master budget by quarters, Giseppe's balance sheet for December 31, 2018, follows: (Click the icon to view the other data.) (Click the icon to view the balance sheet.) First Second Third Fourth Quarter Quarter Quarter Quarter Total Total sales 18810 16280 18480 15180 68750 First Second Third Fourth Quarter Quarter Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr. Cash sales 1st Qtr.-Credit sales, collection of Otr. 1 sales in Qtr. 1 1st Qtr. Credit sales, collection of Qtr. 1 sales in Qtr. 2 2nd Qtr.-Cash sales 2nd Qtr.-Credit sales, collection of Qtr. 2 sales in Qtr. 2 2nd Qtr.-Credit sales, collection of Qtr. 2 sales in Qtr. 3 -, 2 3 3rd Otr Cash sales 3rd Qtr.-Credit sales, collection of Qtr. 3 sales in Qtr. 3 3rd Qtr.-Credit sales, collection of Qtr. 3 sales in Qtr. 4 4th Qtr.-Cash sales - 4th Qtr.-Credit sales, collection of tr. 4 sales in Qtr. 4 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: , 4th Qtr.-Credit sales, collection of tr. 4 sales in Qir, 1 of 2020 Data Table December 31, 2018 Assets Current Assets: Cash $ 63,000 Accounts Receivable 45,000 Raw Materials Inventory 3,300 10,500 Finished Goods Inventory Total Current Assets $ 121,800 Property, Plant, and Equipment: Equipment 168,000 (106,000) Less: Accumulated Depreciation 62,000 183,800 Total Assets Liabilities Current Liabilities: Accounts Payable $ 9,000 Stockholders' Equity Common Stock, no par $ 170,000 Retained Earnings 4,800 Total Stockholders' Equity 174,800 $ 183,800 Total Liabilities and Stockholders' Equity Print Done Requirements 1. Prepare Giseppe's operating budget and cash budget for 2019 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 Giseppe's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. Print Done - X More Info a. e. (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) Budgeted sales are 1,100 tires for the first quarter and expected to increase by 200 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 300 tires at $35 each. Desired ending Finished Goods Inventory is 50% of the next quarter's sales; first quarter sales for 2020 are expected be 1,900 C. tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 600 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 $5.50 per pound. Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending f. inventory for December 31, 2019 is 600 pounds; indirect materials are insignificant and not considered for budgeting purposes. 9. Each tire requires 0.60 hours of direct labor, direct labor costs average $20 per hour. h. Variable manufacturing overhead is $5 per tire. Fixed manufacturing overhead includes $2,500 per quarter in depreciation and $22,500 per quarter for other costs, such as utilities, i. insurance, and property taxes. Fixed selling and administrative expenses include $9,000 per quarter for salaries; $1,500 per quarter for rent: $1,650 per quarter i. for insurance; and $1,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. 1. Capital expenditures include $50,000 for new manufacturing equipment, to be purchased and paid in the first quarter. Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; December 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible accounts are considered insignificant and not m. considered for budgeting purposes. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter; December 31, 2018, Accounts n. 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. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. Cicono dacice to maintain a minimum och balance of 60 000 and bacown from the local banke nooded in inanamante of p. More Info C. d. e i. b. Finished Goods Inventory on December 31, 2018 consists of 300 tires at $35 each. Desired ending Finished Goods Inventory is 50% of the next quarter's sales; first quarter sales for 2020 are expected be 1,900 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2018, consists of 600 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 $5.50 per pound. Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending f. inventory for December 31, 2019 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 $20 per hour. h. Variable manufacturing overhead is $5 per tire. Fixed manufacturing overhead includes $2,500 per quarter in depreciation and $22,500 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $9,000 per quarter for salaries: $1,500 per quarter for rent: $1,650 per quarter 1. for insurance; and $1,000 per quarter for depreciation. Variable selling and administrative expenses include supplies at 2% of sales. I. Capital expenditures include $50,000 for new manufacturing equipment, to be purchased and paid in the first quarter. Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; December 31, 2018, Accounts Receivable is received in the first quarter of 2019; uncollectible accounts are considered insignificant and not m. considered for budgeting purposes. Direct materials purchases are paid 60% in the quarter purchased and 40% in the following quarter, December 31, 2018, Accounts n. Payable is paid in the first quarter of 2019, Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. P. Income tax expense projected at $3,500 per quarter and is paid in the quarter incurred. Giseppe desires to maintain a minimum cash balance of $60,000 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 12% per year and paid at the beginning of the quarter based on the amount 9. outstanding from the previous quarter. k. 0