oo mobily 1:34 PM Bassam ACCT212 181 - Assignment 2 ACCT212 SEM 181-ASSIGNMENT2 Gruden Company produces golf discs which it normally sells to retailers for SR7 each. The cost of manufacturing 20,000 golf discs is: s 10000 0,000 Fised overhead 100.000 Gruden also incurs 5% sales commission [SD35) on each disc sold McGee Corporation offers Gruden SR4.80 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Graden accepts the offer, its fixed overhead will increase from SR40,000 to SR46,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order (a) Prepare an incremental analysis for the special order Reject Order Accept Order Net Income (Decrease) Revenues Materials Labor Variable overhead Fixed overhead Net income b) Should Gruden accept the spedial order? Why or why not? (c) What assumptions underlie the dedsion made in part (b)? 4 of 19 ACCT212 SEM 181-ASSIGNMENT2 On Janaary 2, 2013, Benson Hospital purchased a SR100,000 special radiology scanner from Picard Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are SR105,000 Approximatedly one year later, the hospital is approached by Dyno Technology salesperson, Meg Ryan, who indicated that purchasing the scanner in 2013 from Picard Inc. was a mistake She points out that Dyno has a scanner that will save Benson Hospital SR30000 a year in operating expenses over its 3-year useful life. She notes that the new scanner w cost SR110,000 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal quality.The new scanner will have no disposal value Ryan agrees to buy the old scanner from Benson Hospital for SR40000 (a) If Benson Hospital sells its old scanner on January 2,2014,compute the gain or loss on the sale (b) Using incremental analysis, determine if Benson Hospital should purchase the new scanner on January 2, 2014. Use the format below for your answer Retain Scanner Replace Net Income Increase Decrease) Scanner Annual operating costs New scanner cost Old scanner salvage Total (c) Explain why Benson Hospital might be reluctant to purchase the new scanner, regardless of the resalts indicated by the incremental analysis in (b) 5 of 19 ACCT212 SEM 181-ASSIGNMENT2 Judy Jean, a recent graduate of Rolling's accounting program, evaluated the operating performance of Artie Company's six divisions Judy made the following presentation to Artie's board of directors and suggested the Huron Division be eliminated. "If the Huron Division is liminated, she said, our total profits would increase by SR26,000 Five Divisions Dision Total $100.000 1,764.200 Sales Cost of goods sold Gross prolis $1,664,200 978,520 76.000 1,054,520 685.680 27.940 24.000 50.000 77.940 131,740 Net income 157,740 $(26.000) In the Huron Division, cost of goods sold is SR61,000 variable and SR15,000 fixed, and operating expenses are SR26,000 variable and SR24,000 fixed. None of the Huron Division's fixed costs will be eliminated if the division is discontinued Is Judy right about eliminating the Huron Division? Prepare a schedule to support your Net Income Increase (Decrease) Continue Eliminate Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) ACCT212 SEM 181-ASSIGNMENT 2 QUESTIONS o mobily 1:35 PM Bassam ACCT212 181 - Assignment 2 6 of 19 ACCT212 SEM 181-ASSIGNMENT 2 Cawley Company makes three models of tasers Information on the three products is given below. Tingler Shocker Stunner 300,000 $500,000$200,000 150,000 150,000 120,000 0,000000 Variable expenses 200,000 145,000 5,000 Fised expenses Net income 30,000 570.000 $(40.000 Fixed expenses consist of SR300,000 of common costs alocated to the three products based on relative sales, and additional fixed expenses of SR30,000 (Tingler), SR80,000 (Shocker). and SR35,000 (Stunner) The common costs will be incuurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income (a) Compute current net income for Cawley Company b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the SR300,000 common costs to the two remaining product lines based on their relative sales) Tingler Total Sales Variable expenses Contribution margin Fixed expenses Net income (c) Should Cawley eliminate the Stunner product line? Why or why not? 7 of 19 ACCT212 SEM 181-ASSIGNMENT 2 A) Abu Laqman Tire Company manufactures racing tires for bicycles. Abe Laqman sells tires for SRS0 each. Abu Luqman is planning for the next year by developing a master budget by quarters. Abu Luqman's halance sheet for December 31, 2014, follows ABU LUQMAN TIRE COMPANY Balance Sheet December 31, 2014 ASSETS Current Assets: 20,000 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets 3,000 SR 53,800 Property, Plant, and Equipment Equipment Less: Accumulated Depreciation.(57,000) Total 175,000 118.000 LIABILITIES Current Liabilities: STOCKHOLDERS EQUITY Common St Retained Earnings 125,000 41.800 .- Total Liabilities and Stockholders Equity 171800 Other data for Abu Luqman Tire Company a. Budgeted sales are 900 tires for the Erst quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70% sales on account. Finished Goods Inventory on December 31 consists of 200 tires at SR29 each. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2016 are expected be 1,300 tires. FIFO inventory costing method is used. b. c. d. Direct materials cost is SR15 per tire e. Desired ending Raw Materials Inventory is 20% of the next quarter's direct materials needed for production; desired ending inventory for December 31 is SR3,000; indirect materials are insignificant and not considered for badgeting purposes. ACCT212 SEM 181-ASSIGNMENT2 f. Each tire requires 0.20 hours of direct labor; direct labor costs average SR18 per hour d. e. Direct materials cost is SR15 per tire. Desired ending Raw Materials Inventory is 20% of the next quarter's direct materials 8 of 19 aprinsuctionantsinedendinginve20frenextquarter'sdirectmaterials or production; desired ending inventory for December 31 is SR3,000: indirect iare insignificant and not considered for budgeting purposes. ACCT212 SEM18-ASSIGNMENT2 f. Each tire requires 0.20 hours of direct labor; direct labor costs average SR18 per hour. g Variable manufacturing overhead is SR2 per tire h. Fixed manufacturing overhead includes SR3,000 per quarter in depredation and SR4,232 per quarter for other costs, such as utilities, insurance, and property taxes L Fixed selling and administrative expenses include SR9,000 per quarter for salaries SR3,000 per quarter for rent SR600 per quarter for insurance; and SR500 per quarter for depreciation. Variable selling and administrative expenses include supplies at 1% of sales Capital expenditures include SR20,000 for new manufacturing equipment, to be purchased and paid in the irst quarter Cash receipts for sales on account are 50% in the quarter of the sale and 50% in the quarter following the sale; December 31, 2014, Accounts Receivable is received in the first quarter of 2015; uncollectible accounts are considered insignificant and not considered for budgeting purposes j. k m. Direct materials purchases are paid 75% in the quarter purchased and 25% in the following quarter, December 31,2014, Accounts Payable is paid in the first quarter of 2015 Direct labor, manufacturing overbead, and selling and administrative costs are paid in the quarter incurred n. o Income tax expense is projected at SR2,000 per quarter and is paid in the quarter incurred Requirements 1) Prepare Aba Luqman's operating budget and cash budget for 2015 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, and selling and administrative expense budget Manufacturing overhead costs are allocated based on direct labor hours. WRITE ALL THE ANSWERS IN THE ANSWER SHEETS PROVIDED B) Abu llas Company expects to have a cash balance of SR45,000 on Janary 1,2014 Relevant monthly budget data for the first 2 months of 2014 are as follows . Collections from customers: January SR85,000, February SR150,000 . Direct labor: January SR30,000, February SR45,000. Wages are paid inthe month . Manufacturing overhead January SR21,000, February SR25,000. These costs Payments for direct materials January SR50,000, February SR75,000. they are incurred include depreciation of SR1500 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January SR 15,000. February SR2000. These costs are exclusive of depreciation They are paid as incurred. . Sales of marketable securities in January are expected torealize SR12,000 in cash. Abu llyas Company has a line of credit at a local bank that enables it to borrow up to SR25,000. The company wants to maintain a minimum monthly cash balance of SR20,000. Prepare a cash budget for January and February IN THE ANSWER SHEETS PROVIDED ACCT212 SEM 181-ASSIGNMENT 2 MODULE 6-PERFORMANCE EVALUATION (BALANCE SCORECARD) Consider the following key performance indicators: a. Number of customer complaints b. Number of information system m. Manufacturing cycle time (average length of production process) n. Earnings growth a Average machine setup time P. Number of new customers c. Residual income d. New product development time e. Employee turnover rate f Percentage of products with online help manuals gCustomer retention h. Percentage of compensation based r. Cash flow from operations s. Customer satisfaction ratings t. Machine downtime u. Finished products per day per L Percentage of orders filled each Percentage of employees with access to upgraded system v. w. Wailt time per order prior to start of k Number of new patents Employee satisfaction ratings L In the table next page, classify each indicator above according to the balanced scorecard perspective it addresses. Choose from the finandial perspective, customer perspective, internal business perspective, and the leaming and growth perspective as indicated in the oo mobily 1:36 PM K Bassam ACCT212 181 - Assignment 2 10 of 19 ACCT212 SEM 181-ASSIGNMENT 2 Item LetterKePerformance IndicatorPerspective Customer Financial Internal Business Learning and Growth ..000 mobily 1:37 PM Bassam ACCT212 181 - Assignment 2 ABU LUQMAN TIRE COMPANY Sales Budget For the Year Ended December 31.2015 First Second hirdFourth Bud Sales price per tire ires to be Total sales ABU LUQMAN TIRE COMPANY Production Budget For the Year Ended December 31, 2015 First Second Third Fourth Total Budgeted Plus: Desired tires in ending inventory tires to be sold Total tires needed Less Tires in beginning Budgeted tires to be ed ..ooo mobily 1:37 PM Bassam ACCT212 181 - Assignment 2 13 of 19 ABU LUQMAN TIRE COMPANY Direct Materials Budget For the Year Ended December 31, 2015 Fir 1 Second Third | Fourth Quarter ter uarter Quarter Total Budgeted tires to be Direct materials cost per tire Direct materials needed foe Plus: Desired direct matcrials in ending inventory Total direct materials Less Direct materials in beginning Budgeted purchases of direct ABU LUQMAN TIRE COMPANY Direct Labor Budget For the Year Ended December 31, 2015 First SecondThid Fourth Total Direct labor hours per tire Direct labor hours needed for Budgeted direct labor cost ooo mobily 1:37 PM KBassam ACCT212 181 - Assignment 2 15 of 19 ABU LUOMAN TIRE COMPANY Manufacturing Overhcad Bodget For the Year Ended December 31, 2015 First SecondThi Founh Quarer QuarerQuaner Quarter Total Budgeted tires to be produced Variable overbead cost Budeeted variable overhead od fised ovethead Utilities, insurance, property Budgeted mansfacturing evethead Direct labor hours Budgetod manefacturing overhead Predetermined overhead allocation rate ( Calkulations for Cost of Goods Sold Budget Direct materials cost per tire Direct labor cost per tire ( Manufacturing overhead cost per tire ( Total projected manufacturing cost per tire 17 of 19 ABU LUQMAN TIRE COMPANY Cost of Goods Sold Budget For the Year Ended December 31, 2015 First Second Third Fourth Quaer Quarter Quarter Quaner Total Beginning inventory, 200 tires at Tires produced and sold in 2015 at cach Total budgeted cost of goods sold ABU LUQMAN TIRE COMPANY Selling and Administrative Expense Budget For the Year Ended December 31, 2015 Fist Second Third Fourth Quarter Ouarter Quarter Quarter Total Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplses Expense ( 1 % of sales) Total budget ed selling and administrative expense 18 of 19 ABU LUQMAN TIRE COMPANY Selling and Administrative Expense Budget For the Year Ended December 31, 2015 First Second ThirdFourth Quarter Quarter . Quarter Quarter . Total Salaries Ex Rent Expcnse Insurance Expense Supplies Expense (1 % of sales) Total budgcted selling and administrat MODLES-QUESTION inning cash balance Total otal available cash Disect materials xcess (deficiency) of available cash over cash disbursements cash balance oo mobily 1:34 PM Bassam ACCT212 181 - Assignment 2 ACCT212 SEM 181-ASSIGNMENT2 Gruden Company produces golf discs which it normally sells to retailers for SR7 each. The cost of manufacturing 20,000 golf discs is: s 10000 0,000 Fised overhead 100.000 Gruden also incurs 5% sales commission [SD35) on each disc sold McGee Corporation offers Gruden SR4.80 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Graden accepts the offer, its fixed overhead will increase from SR40,000 to SR46,000 due to the purchase of a new imprinting machine. No sales commission will result from the special order (a) Prepare an incremental analysis for the special order Reject Order Accept Order Net Income (Decrease) Revenues Materials Labor Variable overhead Fixed overhead Net income b) Should Gruden accept the spedial order? Why or why not? (c) What assumptions underlie the dedsion made in part (b)? 4 of 19 ACCT212 SEM 181-ASSIGNMENT2 On Janaary 2, 2013, Benson Hospital purchased a SR100,000 special radiology scanner from Picard Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are SR105,000 Approximatedly one year later, the hospital is approached by Dyno Technology salesperson, Meg Ryan, who indicated that purchasing the scanner in 2013 from Picard Inc. was a mistake She points out that Dyno has a scanner that will save Benson Hospital SR30000 a year in operating expenses over its 3-year useful life. She notes that the new scanner w cost SR110,000 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal quality.The new scanner will have no disposal value Ryan agrees to buy the old scanner from Benson Hospital for SR40000 (a) If Benson Hospital sells its old scanner on January 2,2014,compute the gain or loss on the sale (b) Using incremental analysis, determine if Benson Hospital should purchase the new scanner on January 2, 2014. Use the format below for your answer Retain Scanner Replace Net Income Increase Decrease) Scanner Annual operating costs New scanner cost Old scanner salvage Total (c) Explain why Benson Hospital might be reluctant to purchase the new scanner, regardless of the resalts indicated by the incremental analysis in (b) 5 of 19 ACCT212 SEM 181-ASSIGNMENT2 Judy Jean, a recent graduate of Rolling's accounting program, evaluated the operating performance of Artie Company's six divisions Judy made the following presentation to Artie's board of directors and suggested the Huron Division be eliminated. "If the Huron Division is liminated, she said, our total profits would increase by SR26,000 Five Divisions Dision Total $100.000 1,764.200 Sales Cost of goods sold Gross prolis $1,664,200 978,520 76.000 1,054,520 685.680 27.940 24.000 50.000 77.940 131,740 Net income 157,740 $(26.000) In the Huron Division, cost of goods sold is SR61,000 variable and SR15,000 fixed, and operating expenses are SR26,000 variable and SR24,000 fixed. None of the Huron Division's fixed costs will be eliminated if the division is discontinued Is Judy right about eliminating the Huron Division? Prepare a schedule to support your Net Income Increase (Decrease) Continue Eliminate Sales Variable costs Cost of goods sold Operating expenses Total variable Contribution margin Fixed costs Cost of goods sold Operating expenses Total fixed Net income (loss) ACCT212 SEM 181-ASSIGNMENT 2 QUESTIONS o mobily 1:35 PM Bassam ACCT212 181 - Assignment 2 6 of 19 ACCT212 SEM 181-ASSIGNMENT 2 Cawley Company makes three models of tasers Information on the three products is given below. Tingler Shocker Stunner 300,000 $500,000$200,000 150,000 150,000 120,000 0,000000 Variable expenses 200,000 145,000 5,000 Fised expenses Net income 30,000 570.000 $(40.000 Fixed expenses consist of SR300,000 of common costs alocated to the three products based on relative sales, and additional fixed expenses of SR30,000 (Tingler), SR80,000 (Shocker). and SR35,000 (Stunner) The common costs will be incuurred regardless of how many models are produced. The other fixed expenses would be eliminated if a model is phased out James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income (a) Compute current net income for Cawley Company b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the SR300,000 common costs to the two remaining product lines based on their relative sales) Tingler Total Sales Variable expenses Contribution margin Fixed expenses Net income (c) Should Cawley eliminate the Stunner product line? Why or why not? 7 of 19 ACCT212 SEM 181-ASSIGNMENT 2 A) Abu Laqman Tire Company manufactures racing tires for bicycles. Abe Laqman sells tires for SRS0 each. Abu Luqman is planning for the next year by developing a master budget by quarters. Abu Luqman's halance sheet for December 31, 2014, follows ABU LUQMAN TIRE COMPANY Balance Sheet December 31, 2014 ASSETS Current Assets: 20,000 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets 3,000 SR 53,800 Property, Plant, and Equipment Equipment Less: Accumulated Depreciation.(57,000) Total 175,000 118.000 LIABILITIES Current Liabilities: STOCKHOLDERS EQUITY Common St Retained Earnings 125,000 41.800 .- Total Liabilities and Stockholders Equity 171800 Other data for Abu Luqman Tire Company a. Budgeted sales are 900 tires for the Erst quarter and expected to increase by 100 tires per quarter. Cash sales are expected to be 30% of total sales, with the remaining 70% sales on account. Finished Goods Inventory on December 31 consists of 200 tires at SR29 each. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2016 are expected be 1,300 tires. FIFO inventory costing method is used. b. c. d. Direct materials cost is SR15 per tire e. Desired ending Raw Materials Inventory is 20% of the next quarter's direct materials needed for production; desired ending inventory for December 31 is SR3,000; indirect materials are insignificant and not considered for badgeting purposes. ACCT212 SEM 181-ASSIGNMENT2 f. Each tire requires 0.20 hours of direct labor; direct labor costs average SR18 per hour d. e. Direct materials cost is SR15 per tire. Desired ending Raw Materials Inventory is 20% of the next quarter's direct materials 8 of 19 aprinsuctionantsinedendinginve20frenextquarter'sdirectmaterials or production; desired ending inventory for December 31 is SR3,000: indirect iare insignificant and not considered for budgeting purposes. ACCT212 SEM18-ASSIGNMENT2 f. Each tire requires 0.20 hours of direct labor; direct labor costs average SR18 per hour. g Variable manufacturing overhead is SR2 per tire h. Fixed manufacturing overhead includes SR3,000 per quarter in depredation and SR4,232 per quarter for other costs, such as utilities, insurance, and property taxes L Fixed selling and administrative expenses include SR9,000 per quarter for salaries SR3,000 per quarter for rent SR600 per quarter for insurance; and SR500 per quarter for depreciation. Variable selling and administrative expenses include supplies at 1% of sales Capital expenditures include SR20,000 for new manufacturing equipment, to be purchased and paid in the irst quarter Cash receipts for sales on account are 50% in the quarter of the sale and 50% in the quarter following the sale; December 31, 2014, Accounts Receivable is received in the first quarter of 2015; uncollectible accounts are considered insignificant and not considered for budgeting purposes j. k m. Direct materials purchases are paid 75% in the quarter purchased and 25% in the following quarter, December 31,2014, Accounts Payable is paid in the first quarter of 2015 Direct labor, manufacturing overbead, and selling and administrative costs are paid in the quarter incurred n. o Income tax expense is projected at SR2,000 per quarter and is paid in the quarter incurred Requirements 1) Prepare Aba Luqman's operating budget and cash budget for 2015 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, and selling and administrative expense budget Manufacturing overhead costs are allocated based on direct labor hours. WRITE ALL THE ANSWERS IN THE ANSWER SHEETS PROVIDED B) Abu llas Company expects to have a cash balance of SR45,000 on Janary 1,2014 Relevant monthly budget data for the first 2 months of 2014 are as follows . Collections from customers: January SR85,000, February SR150,000 . Direct labor: January SR30,000, February SR45,000. Wages are paid inthe month . Manufacturing overhead January SR21,000, February SR25,000. These costs Payments for direct materials January SR50,000, February SR75,000. they are incurred include depreciation of SR1500 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January SR 15,000. February SR2000. These costs are exclusive of depreciation They are paid as incurred. . Sales of marketable securities in January are expected torealize SR12,000 in cash. Abu llyas Company has a line of credit at a local bank that enables it to borrow up to SR25,000. The company wants to maintain a minimum monthly cash balance of SR20,000. Prepare a cash budget for January and February IN THE ANSWER SHEETS PROVIDED ACCT212 SEM 181-ASSIGNMENT 2 MODULE 6-PERFORMANCE EVALUATION (BALANCE SCORECARD) Consider the following key performance indicators: a. Number of customer complaints b. Number of information system m. Manufacturing cycle time (average length of production process) n. Earnings growth a Average machine setup time P. Number of new customers c. Residual income d. New product development time e. Employee turnover rate f Percentage of products with online help manuals gCustomer retention h. Percentage of compensation based r. Cash flow from operations s. Customer satisfaction ratings t. Machine downtime u. Finished products per day per L Percentage of orders filled each Percentage of employees with access to upgraded system v. w. Wailt time per order prior to start of k Number of new patents Employee satisfaction ratings L In the table next page, classify each indicator above according to the balanced scorecard perspective it addresses. Choose from the finandial perspective, customer perspective, internal business perspective, and the leaming and growth perspective as indicated in the oo mobily 1:36 PM K Bassam ACCT212 181 - Assignment 2 10 of 19 ACCT212 SEM 181-ASSIGNMENT 2 Item LetterKePerformance IndicatorPerspective Customer Financial Internal Business Learning and Growth ..000 mobily 1:37 PM Bassam ACCT212 181 - Assignment 2 ABU LUQMAN TIRE COMPANY Sales Budget For the Year Ended December 31.2015 First Second hirdFourth Bud Sales price per tire ires to be Total sales ABU LUQMAN TIRE COMPANY Production Budget For the Year Ended December 31, 2015 First Second Third Fourth Total Budgeted Plus: Desired tires in ending inventory tires to be sold Total tires needed Less Tires in beginning Budgeted tires to be ed ..ooo mobily 1:37 PM Bassam ACCT212 181 - Assignment 2 13 of 19 ABU LUQMAN TIRE COMPANY Direct Materials Budget For the Year Ended December 31, 2015 Fir 1 Second Third | Fourth Quarter ter uarter Quarter Total Budgeted tires to be Direct materials cost per tire Direct materials needed foe Plus: Desired direct matcrials in ending inventory Total direct materials Less Direct materials in beginning Budgeted purchases of direct ABU LUQMAN TIRE COMPANY Direct Labor Budget For the Year Ended December 31, 2015 First SecondThid Fourth Total Direct labor hours per tire Direct labor hours needed for Budgeted direct labor cost ooo mobily 1:37 PM KBassam ACCT212 181 - Assignment 2 15 of 19 ABU LUOMAN TIRE COMPANY Manufacturing Overhcad Bodget For the Year Ended December 31, 2015 First SecondThi Founh Quarer QuarerQuaner Quarter Total Budgeted tires to be produced Variable overbead cost Budeeted variable overhead od fised ovethead Utilities, insurance, property Budgeted mansfacturing evethead Direct labor hours Budgetod manefacturing overhead Predetermined overhead allocation rate ( Calkulations for Cost of Goods Sold Budget Direct materials cost per tire Direct labor cost per tire ( Manufacturing overhead cost per tire ( Total projected manufacturing cost per tire 17 of 19 ABU LUQMAN TIRE COMPANY Cost of Goods Sold Budget For the Year Ended December 31, 2015 First Second Third Fourth Quaer Quarter Quarter Quaner Total Beginning inventory, 200 tires at Tires produced and sold in 2015 at cach Total budgeted cost of goods sold ABU LUQMAN TIRE COMPANY Selling and Administrative Expense Budget For the Year Ended December 31, 2015 Fist Second Third Fourth Quarter Ouarter Quarter Quarter Total Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplses Expense ( 1 % of sales) Total budget ed selling and administrative expense 18 of 19 ABU LUQMAN TIRE COMPANY Selling and Administrative Expense Budget For the Year Ended December 31, 2015 First Second ThirdFourth Quarter Quarter . Quarter Quarter . Total Salaries Ex Rent Expcnse Insurance Expense Supplies Expense (1 % of sales) Total budgcted selling and administrat MODLES-QUESTION inning cash balance Total otal available cash Disect materials xcess (deficiency) of available cash over cash disbursements cash balance