P22-41A (similar to) Question Help The Gavin Tre Comm and year by game Click the icon to view the o tires for bicycles Gavin a tres for a long for the budget by Quarters. Gavi's balance sheet for December 31, 2018 blows c h t ) Other data for Gavin The Company Center) ed schedules and budgets include but production budget direct material budget direct laborbut manufacturing overheads ts, schule of cash payments, and cash budget. Man g e d costs are located based on direct labor hours Rounda tions to Requirement 1. Prepare Gar's operating budget and cash budget for 2019 by Quarter R cost of goods sold but seling and administrative expense budget schedule of car the nearest delar Begin by preparing the budget Gavin Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Fourth Quarter Budete tres to be sold Data Table hee 201 che Gavin Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment 74,000 25,000 1,800 3,000 103,800 139,000 (39,000) 100,000 Less: Accumulated Depreciation $ 203,800 Total Assets Liabilities Current Liabilities: Accounts Payable 11,000 Print Done 1 of 1 (0 complete 1 More Info vin's Age ash ense ate mpa get cemb (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. 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. 1. 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 DUL 4. ORADA neck A Print Done