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Please Help!! $ Gilder Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash 63,000 Accounts Receivable 32,000 Raw Materials Inventory 7,200 Finished Goods

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$ Gilder Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash 63,000 Accounts Receivable 32,000 Raw Materials Inventory 7,200 Finished Goods Inventory 16,800 Total Current Assets $ Property, Plant, and Equipment: Equipment 183,000 Less: Accumulated Depreciation (39,000) $ Total Aceste 119,000 144,000 263,000 119,000 144,000 263,000 $ Total Current Assets $ Property, Plant, and Equipment: Equipment 183,000 Less: Accumulated Depreciation (39,000) $ Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par $ 150,000 Retained Earnings 102,000 Total Stockholders' Equity $ Total Liabilities and Stockholders' Equity $ 11,000 252,000 263,000 (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 1,400 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 600 tires at $28 each. C. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2020 are expected be 2,200 tires. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2018, consists of 1,200 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 $6.00 per pound. f. Desired ending Raw Materials Inventory is 10% of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2019 is 1,200 pounds; indirect materials are insignificant and not considered for budgeting purposes. g. Each tire requires 0.80 hours of direct labor, direct labor costs average $14 per hour. h. Variable manufacturing overhead is $4 per tire. i. Fixed manufacturing overhead includes $3,000 per quarter in depreciation and $32,400 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $11,000 per quarter for salaries; $5,700 per quarter for rent; $900 per quarter for insurance; and $2,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% 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 80% in the quarter of the sale and 20% 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 considered for budgeting purposes. n. Direct materials purchases are paid 70% in the quarter purchased and 30% in the following quarter; December 31, 2018, Accounts Payable is paid in the first quarter of 2019. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p. Income tax expense is projected at $2,500 per quarter and is paid in the quarter incurred. 9. Gilder 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 10% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Requirements 1. Prepare Gilder'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 Gilder's annual financial budget for 2019, including budgeted income statement and budgeted balance sheet. P22-41A (similar to) :3 Question Help The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $80 each. Gilder is planning for the next year by developing a master budget by quarters. Gilder's balance sheet for December 31, 2018, follows: : (Click the icon to view the balance sheet.) Other data for Gilder Tire Company: A (Click the icon to view the other data.) Read the requirements. Requirement 1. Prepare Gilder'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. Gilder Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Budgeted tires to be sold 1,400 1,600 1,800 $ 80 $ 80 80 $ Sales price per unit $ Total sales 112,000 | $ 128,000 | $ 144,000 Fourth Quarter Total 2,000 6,800 $ 80 $ 80 $ 160,000 $ 544,000 Choose from any list or enter any number in the input fields and then click Check Answer. Review the sales budget you prepared above. Total Gilder Tire Company Production Budget For the Year Ended December 31, 2019 First Second Third Quarter Quarter Quarter Budgeted tires to be sold 1,400 1,600 1,800 640 Plus: Desired tires in ending inventory 720 800 Total tires needed 2,040 2,320 2,600 600 640 720 Less: Tires in beginning inventory 1,440 1,680 1,880 Budgeted tires to be produced Fourth Quarter 2,000 880 6,800 880 2,880 800 7,680 600 2,080 7,080 Third Quarter 1,880 Fourth Quarter 2,080 Total 7,080 Gilder Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Budgeted tires to be produced 1,440 1,680 2 Direct materials per tire Direct materials needed for production 2,880 3,360 Plus: Desired direct materials in ending inventory 336 376 Total direct materials needed 3,216 3,736 Less: 336 Direct materials in beginning inventory 1,200 Budgeted purchases of direct materials 2,016 3,400 2 2 2 2 3,760 4,160 14,160 1,200 416 1,200 4,176 5,360 15,360 1,200 376 416 3,800 4,944 14,160 3,736 5,360 3,216 1,200 4,176 376 15,360 1,200 336 416 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 3,800 2,016 6.00 $ 3,400 6.00 $ 4,944 6.00 $ 14,160 6.00 6.00 $ 12,096 $ 20,400 $ 22,800 $ 29,664 $ 84,960 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. Total Gilder Tire Company Direct Labor Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Budgeted tires to be produced 1,440 1,680 1,880 2,080 Direct labor hours per unit 0.80 0.80 0.80 0.80 Direct labor hours needed for production 1,152 1,344 1,504 1,664 Direct labor cost per hour 14 14 14 || $ 14 16,128 | $ 18,816 Budgeted direct labor cost 21,056 $ 23,296 7,080 0.80 5,664 14 79,296 Prepare the manufacturing overhead budget (Abbreviations used. VOH = variable manufacturing overhead. FOH = fived manuf Review the direct labor budget you prepared above. Gilder Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Budgeted tires to be produced 1,440 1,680 1,880 2,080 VOH cost per tire 4$ 4$ 4 || $ 4||$ Budgeted VOH 5,760 $ 6,720$ 7,520 | $ 8,320 $ Budgeted FOH Total 7,080 4 $ $ 28,320 -------- 2 nnn 2 nnn 2 nnn 2 nnn 12nnn $ 5,760 | $ 6,720 $ 7,520 $ 8,320 $ 28,320 Budgeted VOH Budgeted FOH Depreciation Utilities, insurance, property taxes Total budgeted FOH Budgeted manufacturing overhead costs 3,000 32,400 3,000 32,400 3,000 32,400 3,000 32,400 12,000 129,600 35,400 35,400 35,400 35,400 141,600 $ 41,160 $ 42,120$ 42,920 | $ 43,720 $ 169,920 1,152 1,344 1,504 1,664 5,664 Direct labor hours Budgeted manufacturing overhead costs $ 169,920 30 Predetermined overhead allocation rate Direct labor hours 1,152 1,344 1,504 1,664 5,664 Budgeted manufacturing overhead costs $ 169,920 Predetermined overhead allocation rate 30 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 2 Direct labor cost per tire Manufacturing overhead cost per tire Total projected manufacturing cost per tire for 2019 Choose from any list or enter any number in the input fields and then click Check

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