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OB milar to) The Grady Tire Company manufactures racing tires for bicycles. Grady sells tires for $70 each. Grady is planning for the next year by developing a master budget by quarters, Grady's balance sheet for December 31, 2018, follows: E (Click the icon to view the balance sheet.) Other data for Gra (Click the icon Read the require YOU MY WHOLM MUVIMA Grady Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Supplies Expense $ 700 S 735 $ 770 $ 805 $ 3,010 Salaries Expense 12,500 12,500 12,500 12,500 50,000 Rent Expense 3,600 3,600 3,600 3,600 14,400 Insurance Expense 1,650 1.650 1,650 1,650 .600 500 500 500 500 2.000 Depreciation Expense $ 18,950 18.985 $ 19.020 $ 19,055 $ 76,010 Total budgeted selling and administrative expense Prepare the cash receipts budget. (If an input field is not used in the table leave the input field empty, do not enter a zero.) Review the sales budget you prepared above. Cash Receipts from Customers 1 First Second Third Fourth | Enter any number in the edit fields and then click Check Answer. Clear All 10 parts remaining MacBook Pro SO 888 OGC # 3 % 5 4 6 2 E R W . Q P22-50B (similar to) The Grady Tire Company manufactures racing tires for bicycles. Grady sells tires for $70 each. Grady is planning for the Other data for next year by developing a master budget by quarters. Grady's balance sheet for December 31, 2018, follows: (Click the (Click the icon to view the balance sheet.) Read the regu Review the sales budget you prepared above. Cash Receipts from Customers First Second Third Fourth Quarter Quarter Quarter Quarter Total Total sales First Third Fourth Second Quarter Quarter Quarter Quarter Total Cash Receipts from Customers: Accounts Receivable balance, December 31, 2018 1st Qtr.-Cash sales 1st Qtr ---Credit sales, collection of Qtr. 1 sales in Qtr 1 1st Qtr. --Credit sales, collection of Qtr 1 sales in Qtr. 2 2nd Qur-Cash sales 2nd Otr --Credit sales, collection of tr. 2 sales in Qur. 2 2nd Qur.-Credit sales, collection of Qtr. 2 sales in Qtr. 3. 3rd Qtr.-Cash salos Enter any number in the edit fields and then click Check Answer. 10 parts remaining Clear All W P22-50B (similar to) The Grady Tire Company manufactures racing tires for bicycles. Grady sells tires for $70 each. Grady is planning for the next year by developing a master budget by quarters. Grady's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Other data (Click Read the re 1st Qtr.-Cash sales 1st Qtr. --Credit sales, collection of Qtr. 1 sales in Qtr. 1 1st Qtr-Credit sales, collection of Qtr. 1 sales in Qtr. 2 2nd Qtr.-Cash sales 2nd Qtr.-Credit sales, collection of Qtr. 2 sales in Qt. 2 2nd Qtr.-Credit sales, collection of Qtr. 2 sales in Qtr. 3 3rd Qtr.-Cash sales 3rd Qtr.---Credit sales, collection of Qtr. 3 sales in Qtr. 3 3rd Qtr.-Credit sales, collection of Qtr. 3 sales in Qtr. 4 4th Qtr.-Cash sales 4th Qtr.--Credit sales, collection of Qtr. 4 sales in Qtr. 4 Total cash receipts from customers Accounts Receivable balance, December 31, 2019: 4th Qtr --Credit salos, collection of Qtr. 4 sales in Qtr. 1 of 2020 Enter any number in the edit fields and then click Check Answer. Clear All 10 parts remaining terwyer er 22 Homework 4 of 8( complete Data Table ng tires for bicycles. Grady se quarters. Grady's balance she 2) Quarter Grady Tire Company Balance Sheet December 31, 2018 Assets 1.2018 Current Assets les in Or 1 ales in Ot. 2 5 55.000 40.000 5,000 14.000 Sales in $ 124.800 sales in a si tr. 4 Cash Accounts Receivable Raw Materials Inventory Finished Goods inventory Total Current Assets Property. Plant, and Equipment Equipment Les Accumulated Depreciation Total Assets Liabi Current Labis 177.000 39.000 38.000 sales in Qr4 5 202.600 then click Check Answer Print Done $ 3 5 6 7 9 E R. . U 40,000 5,600 14,000 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment $ 124,600 177,000 (39,000) Less: Accumulated Depreciation 138,000 Total Assets $ $ 262,600 Liabilities Current Liabilities: Accounts Payable 6,000 $ Stockholders' Equity $ 150,000 106,600 Common Stock, no par Retained Earnings Total Stockholders' Equity 256,600 Total Liabilities and Stockholders' Equity 262,600 Print Done More Info - (Unless otherwise noted, assume all of the following events occurred during 2018 and that any balances given are stated as of December 31, 2018.) Budgeted sales are 1,000 tires for the first quarter and expected to increase by 50 tires per quarter. Cash a sales are expected to be 40% of total sales with the remaining 60% of sales on account. b. Finished Goods Inventory on December 31, 2018 consists of 400 tires at $35 each. Desired ending Finished Goods Inventory is 20% of the next quarter's sales; first quarter sales for 2020 are c. expected be 1,200 tires. FIFO inventory costing method is used Raw Materials Inventory on December 31, 2018, consists of 800 pounds of rubber compound used to d. manufacture the tires. Direct materials requirements are 2 pounds of a rubber compound per tire. The cost of the compound is e. $7.00 per pound, 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 800 pounds, indirect materials are f. insignificant and not considered for budgeting purposes 9. Each tire requires 0.40 hours of direct labor direct labor costs average $16 per hour. h. Variable manufacturing overhead is $2 per tire. Fixed manufacturing overhead includes $4,000 per quarter in depreciation and $14,630 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $12,500 per quarter for salarios: $3,600 per quarter for 1 rent: $1,650 per quarter for insurance, and $500 per quarter for depreciation k. Variable selling and administrative expenses include supplies at 1% of sales. Capital expenditures include $30,000 for new manufacturing equipment, to be purchased and paid in the 1.- first quarter. i. Print Done Done 5 6 7 8 R T es for bicycle 0 More Info ters. Grady's 18 n Qtr. 1 n Qtr. 2 in Qtr. 2 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 800 pounds; indirect materials are 1. insignificant and not considered for budgeting purposes. 9. Each tire requires 0.40 hours of direct labor, direct labor costs average $16 per hour. h. Variable manufacturing overhead is $2 per tire. Fixed manufacturing overhead includes $4,000 per quarter in depreciation and $14,630 per quarter for i. Other costs, such as utilities, insurance, and property taxes, Fixed selling and administrative expenses include $12,500 per quarter for salaries; $3,600 per quarter for 1. rent; $1,650 per quarter for insurance; and $500 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales Capital expenditures include $30,000 for new manufacturing equipment, to be purchased and paid in the first quarter. Cash receipts for sales on account are 60% In the quarter of the sale and 40% 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. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred, p. Income tax expense is projected at $2,000 per quarter and is paid in the quarter incurred Grady 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 4. paid at the beginning of the quarter based on the amount outstanding from the previous quarter. In Qtr. 3 in Qtr. 3 in Qtr. 4 in Qtr. 4 click Check A Print Done Done 4 of 8 %x P22-50B (similar to) The Grady Tire Company manufactures racing tires for bicycles. Grady sells tires for $70 each. Grady is planning forth next year by developing a master budget by quarters. Grady's balance sheet for December 31, 2018, follows: Click the icon to view the balance sheet.) $ Direct labor cost per tire 6.40 Direct materials cost per tire 14.00 Manufacturing overhead cost per tire 20.00 40.40 Total projected manufacturing cost per tire for 2019 Now prepare the cost of goods sold budget. Review the sales budget you prepared above. Review the production budget you prepared above. Grady Tire Company Cost of Goods Sold Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Beginning inventory $ 14,000 $ 14,000 Tires produced and sold in 2019 24,240 $ 42,420 $ 44,440 $ 46,460 157,560 Total budgeted cost of goods sold 38,240 $ 42,420 $ 44,440 s 46,460 $ 171,560 Pranare the calling and administrative evnene huidnat Enter any number in the edit fields and then click Check Answer. 10 parts remaining Clear
