prepare the cash payments budget

Ohesdeia fos CRIle Tise. Reference Gilder Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Total Quarter 1,640 6,640 Budgeted tires to be produced 1,840 2,040 1,120 21 2 2 2 Direct materials per tire 3,680 Direct materials needed for production 4,080 13,280 2,240 3,280 1,472 1,200 1,200 1,632 1,312 Plus: Desired direct materials in ending inventory 4,752 5,312 5,280 14,480 3,552 Total direct materials needed 1,632 1,200 1,312 1,472 1,200 Less: Direct materials in beginning inventory 13,280 3,648 3,440 3,840 2,352 Budgeted purchases of direct materials 9.50 9.50 $ 9.50 $ 9.50 $ 9.50 $ Direct materials cost per pound 34,656 S 126,160 36,480 $ 32,680 S 22,344 $ Budgeted cost of direct materials Done Print acing tires for bicycles. Gilder sel's tires for $80 each. Gilder is master budget by quartors. Gider's balance sheet for Other data for Gilder Tire Company i (Click the icon to view the other data.) Read the rROuiremants Reference Gilder Tire Company Direct Labor Budget For the Year Ended December 31, 2019 Fourth Third Second First Total Quarter Quarter Quarter Quarter 2,040 6,640 1,640 1,840 Budgeted tires to be produced 1,120 0.20 0.20 0.20 0.20 0.20 Direct labor hours per unit 1,328 408 368 328 224 Direct labor hours needed for production 10 $ 10 10 $ 10 $ 10 $ Direct labor cost per hour 13,280 3,680 S 4,080 S 3,280 $ 2,240 $ Budgeted direct labor cost Done Print en click Check Answer. Reference Gilder Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2019 First Third ter a z Second Fourth Total Quarter Quarter Quarter Quarter Budgeted tires to be produced 1,120 1,640 1,840 2,040 6,640 4 S 4 S 4 S 4 S VOH cost per tire 7,360 $ 8,160 S Budgeted VOH $ 4.480 S 6,560 $ 26,560 Budgeted FOH Depreciation 2,000 8,000 2,000 2,000 2,000 5,968 23,872 5,968 5,968 5,968 Utilities, insurance, property taxes 31,872 7,968 7,968 7,968 7,968 Tatal budgeted FOH 16,128 S 12,448 $ 58,432 14,528 S 15,328 S S Budgeted manufacturing overhead costs 1,328 408 328 368 224 Direct labor hours $ 58,432 Budgeted manufacturing overhead costs 44 Predetermined overhead allocation rate Print Done Reference Gilder Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 Third First Second Fourth Quarter Quarter Quarter Quarter Total 12,000 $ 12,000 S Salaries Expense 12,000 $ 48,000 $ 12,000 S 5,700 Rent Expense 5,700 5,700 5,700 22,800 600 600 600 2,400 Insurance Expense 600 Depreciation Expense 2,000 500 500 500 500 10,380 2,560 3,200 2,240 2,880 Supplies Expense 21,360 $ 86,080 21,040 S 21,680 S 22,000 S Total budgeted selling and administrative expense Print Done Cash Payments Third Fourth Second First Quarter Total Quarter Quarter Quarter Total direct materials purchases Fourth Third Second First Total Quarter Quarter Quarter Quarter Cash Payments Direct Materials: Accounts Payable balance, December 31, 2018 1st Qtr.-Qtr. 1 direct material purchases paid in Qtr. 1 1st Qtr-Qtr. 1 direct material purchases paid in Qtr. 2 2nd Qtr.-Qtr. 2 direct material purchases paid in Qtr. 2 2nd Qtr-Qtr. 2 direct material purchases paid in Qtr. 3 3rd Qtr.-Qtr. 3 direct material purchases paid in Qtr. 3 3rd Qtr.-Qtr. 3 direct material purchases paid in Qtr. 4 4th Qtr-Qtr. 4 direct material purchases paid in Qtr. 4 Total payments for direct materials Direct Labor Total payments for direct labor More Info cin ma 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 40% of total sales, with the remaining 60% of sales or account b. Finished Goods Inventory on December 31, 2018 consists of 600 tires at $36 each. c. Desired ending Finished Goods Inventory is 20% 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. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $9.50 per pound. e. f. Desired ending Raw Materials Inventory is 40 % 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 0.20 hours of direct labor; direct labor costs average $10 per hour h. Variable manufacturing overhead is $4 per tire. i. Fixed manufacturing overhead includes $2,000 per quarter in depreciation and $5,968 per quarter for other costs, such as utilities, insurance, and property taxes j. Fixed selling and administrative expenses include $12,000 per quarter for salaries; $5,700 per quarter for rent; $600 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. I. 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 65% in the quarter of the sale and 35% 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 90% in the quarter purchased and 10% in the following quarter; More Info e. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is $9.50 per pound. f. Desired ending Raw Materials Inventory is 40% 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 0.20 hours of direct labor; direct labor costs average $10 per hour. h. Variable manufacturing overhead is $4 per tire. Fixed manufacturing overhead includes $2,000 per quarter in depreciation and $5,968 per quarter for other costs, such as utilities, insurance, and property taxes. i. j. Fixed selling and administrative expenses include $12,000 per quarter for salaries; $5,700 per quarter for rent; $600 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2 % of sales. I. 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 65% in the quarter of the sale and 35% 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 90% in the quarter purchased and 10% 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 $4,000 per quarter and is paid in the quarter incurred. q. Gilder desires to maintain a minimum cash balance of $35,000 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 8% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. X Data Table - Cash $ 40,000 Accounts Receivable 35,000 Raw Materials Inventory 11,400 21,600 Finished Gbods Inventory 108,000 $ Total Current Assets Property, Plant, and Equipment: 150,000 Equipment 82,000 (68,000) Less: Accumulated Depreciation $ 190,000 Total Assets Liabilities Current Liabilities: 10,000 Accounts Payable Stockholders' Equity $ 110,000 Common Stock, no par 70,000 Retained Earnings 180,000 Total Stockholders' Equity 190,000 $ Total Liabilities and Stockholders' Equity