P22-50B (book/static) The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $70 each. Gavin is Other data for Gavin Tire Company planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December (Click the icon to view the other data) 31. 2018, follows Click the icon to view the balance sheet.) Read the requirements Min Qtr --Credit sales, collection of Otr. 4 sales in Ot 1 of 2020 30,240 Prepare the cash payments budget. (Round all amounts you entered into the budget to the nearest whole dollar. If an input field is not used in the table loan Review the direct materials budget you propared above. Review the direct labor budget you prepared above Review the manufacturing overhead budget you prepared above. Review.the selling and administrative expense budget you prepared above. Cash Payments First Second Third Fourth Quarter Quarter Quarter Total Quarter Enter any number in the edit fields and then click Check Answer. 9 parts remaining Clear All Type here to search O Address First Second Third Fourth Quarter Quarter Quarter Quarter Total Total direct materials purchases Second Fourth First Quarter Third Quarter Quarter Quarter Total Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Otr-tr. 1 direct material purchases paid in Qtr. 1 niin 2nd Otror 2 direct material purchases paid in Qtr. 2 2nd Otr-tr. 2 direct material purchases paid in Qtr. 3 3rd Qur-Otr. 3 direct material purchases paid in Qtr. 3 3rd Qirtr. 3 direct material purchases paid in Qtr. 4 4th Otr-tr. 4 direct material purchases paid in Qtr. 4 Total payments for direct materials Direct Labor: Total payments for direct labor Quarter Quarter Quarter Quarter Total 1,180 1,280 1.480 1,680 5,620 3 3 3 3 3 3,200 3,700 > 14.050 Budgeted tires to be produced Direct materials per tire Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials 2.950 1,280 4,200 750 1,480 1,680 750 4,230 4,680 4,950 14,800 5,380 1,480 750 1,280 1,880 750 3,480 3.400 3,900 14.050 3.270 4.00 | s S 4.00 S 4.00 s 4.00 IS 4.00 JUU wiru 1,280 1,480 1.680 750 750 4,230 4.680 4,950 14,800 Larece nas ne vor production Plus: Desired direct materials in ending 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 5,380 1.480 750 1,280 1,680 750 3,480 3,400 3,900 14.050 To 4.00 $ 3,270 4.00 $ 4.00 S 4.00 $ 4.00 S 13,920 $ 13,600 $ 15,600 $ 13,080S 56,200 For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total 5,620 1.180 0.30 1,280 0.30 1,480 0.30 1.680 0.30 0.30 Budgeted tires to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour 354 384 444 504 1,686 20 20 S 20$ 20$ 20 $ $ $ 7,080 S 7,680 $ 8,880 $ 10,080s 33,720 Budgeted direct labor cost BBW 1.180 1,280 1.480 1,880 3 S 5,620 3 s 3$ 3$ 3 $ $ 3,540 $ 3,840 | s 4.440 s 5,040 $ 16,880 Budgeted tires to be produced VOH cost per tire Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 6,000 6.000 6.000 6,000 10,860 24,000 43,440 10,860 10,860 10,860 16,860 16,860 16.860 16,860 20,400 $ 20,700S 67.440 84,300 $ 21,300 $ 21,900 $ Enter any number in the edit fields and then click Check Answer. First Second Third Fourth Total S Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplies Expense Total budgeted selling and administrative expense Quarter Quarter Quarter Quarter 8,000 $ 8,000 $ 8,000 $ 8.000 $ 4,800 4,800 4,800 4,800 1,950 1,950 1,950 1,950 2.000 2,000 2,000 2,000 1,400 1.680 1,960 2.240 18,150 $ 18.430 $ 18.710 $ 18.990$ 32,000 19,200 7,800 8,000 7,280 All 74,280 . vanie song and aurumsauve unpenses de suppres at 27 ur bies. Capital expenditures include $25,000 for new manufacturing equipment to be purchased and paid in 1. 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 m. accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter: n. December 31, 2018, Accounts Payable is paid in the first quarter of 2019. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter o. incurred. p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. Gavin desires to maintain a minimum cash balance of $20,000 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 outstanding from the previous q. quarter. P22-50B (book/static) The Gavin Tire Company manufactures racing tires for bicycles. Gavin sells tires for $70 each. Gavin is Other data for Gavin Tire Company planning for the next year by developing a master budget by quarters. Gavin's balance sheet for December (Click the icon to view the other data) 31. 2018, follows Click the icon to view the balance sheet.) Read the requirements Min Qtr --Credit sales, collection of Otr. 4 sales in Ot 1 of 2020 30,240 Prepare the cash payments budget. (Round all amounts you entered into the budget to the nearest whole dollar. If an input field is not used in the table loan Review the direct materials budget you propared above. Review the direct labor budget you prepared above Review the manufacturing overhead budget you prepared above. Review.the selling and administrative expense budget you prepared above. Cash Payments First Second Third Fourth Quarter Quarter Quarter Total Quarter Enter any number in the edit fields and then click Check Answer. 9 parts remaining Clear All Type here to search O Address First Second Third Fourth Quarter Quarter Quarter Quarter Total Total direct materials purchases Second Fourth First Quarter Third Quarter Quarter Quarter Total Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Otr-tr. 1 direct material purchases paid in Qtr. 1 niin 2nd Otror 2 direct material purchases paid in Qtr. 2 2nd Otr-tr. 2 direct material purchases paid in Qtr. 3 3rd Qur-Otr. 3 direct material purchases paid in Qtr. 3 3rd Qirtr. 3 direct material purchases paid in Qtr. 4 4th Otr-tr. 4 direct material purchases paid in Qtr. 4 Total payments for direct materials Direct Labor: Total payments for direct labor Quarter Quarter Quarter Quarter Total 1,180 1,280 1.480 1,680 5,620 3 3 3 3 3 3,200 3,700 > 14.050 Budgeted tires to be produced Direct materials per tire Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials 2.950 1,280 4,200 750 1,480 1,680 750 4,230 4,680 4,950 14,800 5,380 1,480 750 1,280 1,880 750 3,480 3.400 3,900 14.050 3.270 4.00 | s S 4.00 S 4.00 s 4.00 IS 4.00 JUU wiru 1,280 1,480 1.680 750 750 4,230 4.680 4,950 14,800 Larece nas ne vor production Plus: Desired direct materials in ending 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 5,380 1.480 750 1,280 1,680 750 3,480 3,400 3,900 14.050 To 4.00 $ 3,270 4.00 $ 4.00 S 4.00 $ 4.00 S 13,920 $ 13,600 $ 15,600 $ 13,080S 56,200 For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Fourth Quarter Total 5,620 1.180 0.30 1,280 0.30 1,480 0.30 1.680 0.30 0.30 Budgeted tires to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour 354 384 444 504 1,686 20 20 S 20$ 20$ 20 $ $ $ 7,080 S 7,680 $ 8,880 $ 10,080s 33,720 Budgeted direct labor cost BBW 1.180 1,280 1.480 1,880 3 S 5,620 3 s 3$ 3$ 3 $ $ 3,540 $ 3,840 | s 4.440 s 5,040 $ 16,880 Budgeted tires to be produced VOH cost per tire Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 6,000 6.000 6.000 6,000 10,860 24,000 43,440 10,860 10,860 10,860 16,860 16,860 16.860 16,860 20,400 $ 20,700S 67.440 84,300 $ 21,300 $ 21,900 $ Enter any number in the edit fields and then click Check Answer. First Second Third Fourth Total S Salaries Expense Rent Expense Insurance Expense Depreciation Expense Supplies Expense Total budgeted selling and administrative expense Quarter Quarter Quarter Quarter 8,000 $ 8,000 $ 8,000 $ 8.000 $ 4,800 4,800 4,800 4,800 1,950 1,950 1,950 1,950 2.000 2,000 2,000 2,000 1,400 1.680 1,960 2.240 18,150 $ 18.430 $ 18.710 $ 18.990$ 32,000 19,200 7,800 8,000 7,280 All 74,280 . vanie song and aurumsauve unpenses de suppres at 27 ur bies. Capital expenditures include $25,000 for new manufacturing equipment to be purchased and paid in 1. 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 m. accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter: n. December 31, 2018, Accounts Payable is paid in the first quarter of 2019. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter o. incurred. p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. Gavin desires to maintain a minimum cash balance of $20,000 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 outstanding from the previous q. quarter