Question Ho The Order The Company manufactures racing for biler els tres for 535 each Older is planning for nec dui tore The Company next year by developing a master budget by under beste for December 31, 2016. Todo Clothes were Click the conteve te balance sheet) Read the Requirement 1. Prowelder's operating budget and cash budget for 2010 by Required and blue sales proven direct mai bined wortuor vest com ooit of goods told uspelog and administrative expense Dude, chaue of cash recipes there that and cashMuratore den det er hours and the nearest Bon by prowing the amb Gider Tire Company ila tudget For the Yearded December 31, 2018 First Second Furth Quarter Quarter Quarter Quarter Total Rodgered to be sold 1000 1.200 1.400 Sport Third Total end lid bu (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 200 tires per quarter. Cash a. 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 200 tires at $25 each. Desired ending Finished Goods Inventory is 30% of the next quarter's sales; first quarter sales for 2020 are c. expected be 1,800 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2018, consists of 400 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. $9.50 per pound. Desired ending Raw Materials Inventory is 50% of the next quarter's direct materials needed for production: desired ending inventory for December 31, 2019 is 400 pounds; indirect materials are f. insignificant and not considered for budgeting purposes. g. Each tire requires 0.20 hours of direct labor, direct labor costs average $16 per hour. h. Variable manufacturing overhead is $5 per tire. Fixed manufacturing overhead includes $3,000 per quarter in depreciation and $2,540 per quarter for other i costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $8,500 per quarter for salaries: $3,000 per quarter for rent; $1,950 per quarter for insurance; and $2,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 3% of sales. Capital expenditures include $50,000 for new manufacturing equipment, to be purchased and paid in the first quarter. I. able Gilder Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ 70,000 Accounts Receivable 35,000 Raw Materials Inventory 3,800 5,000 $ 113,800 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment 177,000 (106,000) Less: Accumulated Depreciation 71,000 Total Assets $ 184,800 Liabilities Current Liabilities: Accounts Pavable 6.000 Print Done Data Table 113,800 71,000 184,800 Accounts Receivable 35,000 Raw Materials Inventory 3,800 Finished Goods Inventory 5,000 Total Current Assets $ Property. Plant, and Equipment: Equipment 177,000 Less: Accumulated Depreciation (106,000) $ Total Assets Liabilities Current Liabilities: Accounts Payable Stockholders' Equity Common Stock, no par $ 130,000 48,800 Retained Earnings Total Stockholders' Equity $ Total Liabilities and Stockholders' Equity $ 6,000 178,800 184,800 Print Done
