Save Homework: Week Six: Homework Mastery Problem Chapter 5 (ma Score: 0.28 of 8 pts 1 of 1 (1 complete) HW Score: 3.45%, 0.28 of 8 pts PM5-41A (similar to) Question Help The Gridley Tire Company manufactures facing tires for bicycles Gridley sells tires Other data for Gridley Tire Company for $80 each Gridy is planning for the next year by developing a master budget (Click the icon to view the other data by quarters Gridley's balance sheet for December 31, 2024. follows (Click the con to view the balance sheet Read the requirements Requirement 1. Prepare Gridley's operating budget and cash budget for 2025 by quarter Required schedules and budgets include sales budget production budget direct matonals 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 Gridley Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter 1,200 1.250 1,300 1350 $ 805 80$ 30 S 30$ Total Budgeted tires to be sold 5.100 80 Sales price per unit Total sales S 90 000 $ 100,000 $104.000 S 108 0005 408,000 Prepare the production budget Choose from any list or enter any number in the input fields and then click Check Answer, 17 parts remaining Clear All Final Check 1A (similar to) Data Table X More info 1 buget els and Gridley The Company Balance sheet December 31, 2024 Assets 5 45000 32.000 8000 16200 Cash Accounts Receivable Raw Malawi Finished Goods Inventory Tout Current Property Prant, and Eument Ent Less Accu Depreciation ( Uses of town occurred in 2007 and the ned as of December 1.000 Dugeda 1200 tres for the fustando pelo by Cash Sected to be with ming 70 Fedd went on Dec.2001 consists of res Desd ending dood in 40% of our pode 1400 roycosting mode Raw Mules inventory on December 31, 2004 const 1 200 pounds of the compound amantare te Directors are two pounds of ruber compound per te the cost record 3500 per pound Desired and Raw Materwys of the stores de Doction dusted nang tory for December 31, 20051200 cantad not considered for bodo purposes 9. Esche requires 040 hours of director de labor costs as po Vai malang overheads per Fundmatutung wird in de $2.000 per incond 5100 per other costs such as estrand property taxes Fred Sling and admitive expenses include 514000 per or 55.000 for rent $1.500 per Sand 51 500 per manter for precio Vanatiling die include soples al 15 of ses Capital expenditures de $55.000 for new manufacturing out to be purchased in Les 99.200 155,000 56000 100.000 199 200 Total Asses Liabilities Print Done Print Done Thing for the Data Table - X More info Ind budget ents, and 99 200 100 000 199 200 Accounts Receivable 32000 Raw Materials inventory 6.000 Freshed Goods Inventory 16.200 Total Current Assets Property Pant and Equipment Equipment 155 000 Les Accumulated Depreciation (55000) Total Assets $ Liabilities Current Listes Accounts Payabil s Stockholders' Equity Common Stock, no par $ 140,000 Road Earnings 38.200 Tots Stockholders' Equity 5 Total Liabilities and Stockholders Equity 1 tanto con purposes Each tre roures 0 40 hours of doc labor de labor costs $10 per hou Vanatie manutening overhead is 2 der Fred manufacturing overed includes $2.000 pertinction 510 per other costs such as surance and property taxes Freeding and strative expenses include 514 000 per orale, 53.000 per for rent 51 500 per quarter for insurance and 51 500 per quarter for depreciation Vanable selling and administrative expenses include suppo 15 of Capital expenditures include 555,000 for new manufacturing ement to be thered and paid the first quarter Cash recepts for sale on account o 70% in the quarter of the sale and 30% in the quarter og the sale, December 31, 2024. Accounts Receivable is received in the finite of 1005, uncle accounts are considered insignificant and not considered for budgeting purpose Drect materials purchases are pad 80% in the quarter purchased and 20% in the song at December 31, 2024 Accounts Payable is paid in the first of 2025 Director, manufacturing overhead, and selling and administrative in the incurred Income tax expenses propected at $3,000 per quarter and is pad in the area incurred Godley desires to maintain a minimum cash balance of $45000 and borrows from the local bankas poodied in increments of S1000 at De beginning of the quartet penal pasar made the beginning of the quarter when excess fonds are able and in increments of $1.000, mesin pot year and paid at the beginning of the quarter based on the amount outstanding from the US Quarter 13,000 185,200 199 200 Print Done Print Done re to search O BI $ TUUNU U Lului IIS IU we leal Requirements - X 1. Prepare Gridley's operating budget and cash budget for 2025 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 Gridley's annual financial budget for 2025, including budgeted income statement and budgeted balance sheet. Print Done Data Table Gridley Tire Company Balance Sheet December 31, 2024 Assets jals E led o Current Assets Cash $ 45,000 32,000 6,000 16,200 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less. Accumulated Depreciation $ 99,200 155,000 (55,000) 100,000 199,200 Total Assets Liabilities Current Liabilities Print Done 99+ (hp astery Problem Ch Chapter 5 oter (mana 1 of 1 (1 complete) - X i Data Table 32,000 6,000 16,200 Jals bt ed on Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment Equipment Less: Accumulated Depreciation $ 99,200 155,000 (55,000) 100,000 $ 199,200 13,000 Total Assets Liabilities Current Liabilities Accounts Payable Stockholders' Equity Common Stock, no par S Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 140.000 46,200 186,200 $ 199,200 Print Done 99+ More Info Jnless otherwise noted, assume all of the following events occurred during 2024 and that any balances Even are stated as of December 31, 2024) Budgeted sales are 1,200 tires for the first quarter and expected to increase by 50 tires per quarter. - Cash sales are expected to be 30% of total sales, with the remaining 70% of sales on account. Finished Goods Inventory on December 31, 2024 consists of 600 tires at $27 each. Desired ending Finished Goods Inventory is 40% of the next quarter's sales, first quarter sales for 2026 e are expected be 1,400 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2024, consists of 1,200 pounds of rubber compound used to manufacture the tires. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound e is $5.00 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, 2025 is 1,200 pounds, indirect materials are insignificant and not considered for budgeting purposes 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 $2,000 per quarter in depreciation and $10,650 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $14,000 per quarter for salaries, $3,000 per quarter for rent: $1,500 per quarter for insurance, and $1,500 per quarter for depreciation k. Variable selling and administrative expenses include supplies at 1% of sales Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid in the first quarter i More Info 1. insignificant and not considered for budgeting purposes. g. 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 $2,000 per quarter in depreciation and $10,650 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $14.000 per quarter for salaries, $3,000 per quarter for rent, $1,500 per quarter for insurance, and $1,500 per quarter for depreciation k Variable selling and administrative expenses include supplies at 1% of sales Capital expenditures include $55,000 for new manufacturing equipment to be purchased and paid in 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, 2024. Accounts Receivable is received in the first quarter of 2025, uncollectible m accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter, n. December 31, 2024 Accounts Payable is paid in the first quarter of 2025. Direct labor, manufacturing overhead and selling and administrative costs are paid in the quarter o incurred p. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred Gridley desires to maintain a minimum cash balance of $45.000 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 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous a quarter Print Done Clear All ! 99+ Score: 0.28 of 8 pts % PM5-41A (similar to) The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $80 each Gridley is plan year by developing a master budget by quarters. Gridley's balance sheet for December 31, 2024, follows: Click the icon to view the balance sheet.) Requirement 1. Prepare Gridiey's operating budget and cash budget for 2025 by quarter. Required schedules ar sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, a Begin by preparing the sales budget Gridley Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold 1.200 1,250 1,300 1,350 5.100 Sales price per unit $ 80 S 80$ 80 S 80 $ 80 Total sales 96,000 $100,000 104,000 $ 108.000 $ 408.000 Prepare the production budget Beview the sales budget you prepared above. Gridley Tire Company Choose from any list or enter any number in the input fields and then click Check Answer. 17 parts remaining Search O 99 Save Homework: Week Six: Homework Mastery Problem Chapter 5 (ma Score: 0.28 of 8 pts 1 of 1 (1 complete) HW Score: 3.45%, 0.28 of 8 pts PM5-41A (similar to) Question Help The Gridley Tire Company manufactures facing tires for bicycles Gridley sells tires Other data for Gridley Tire Company for $80 each Gridy is planning for the next year by developing a master budget (Click the icon to view the other data by quarters Gridley's balance sheet for December 31, 2024. follows (Click the con to view the balance sheet Read the requirements Requirement 1. Prepare Gridley's operating budget and cash budget for 2025 by quarter Required schedules and budgets include sales budget production budget direct matonals 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 Gridley Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter 1,200 1.250 1,300 1350 $ 805 80$ 30 S 30$ Total Budgeted tires to be sold 5.100 80 Sales price per unit Total sales S 90 000 $ 100,000 $104.000 S 108 0005 408,000 Prepare the production budget Choose from any list or enter any number in the input fields and then click Check Answer, 17 parts remaining Clear All Final Check 1A (similar to) Data Table X More info 1 buget els and Gridley The Company Balance sheet December 31, 2024 Assets 5 45000 32.000 8000 16200 Cash Accounts Receivable Raw Malawi Finished Goods Inventory Tout Current Property Prant, and Eument Ent Less Accu Depreciation ( Uses of town occurred in 2007 and the ned as of December 1.000 Dugeda 1200 tres for the fustando pelo by Cash Sected to be with ming 70 Fedd went on Dec.2001 consists of res Desd ending dood in 40% of our pode 1400 roycosting mode Raw Mules inventory on December 31, 2004 const 1 200 pounds of the compound amantare te Directors are two pounds of ruber compound per te the cost record 3500 per pound Desired and Raw Materwys of the stores de Doction dusted nang tory for December 31, 20051200 cantad not considered for bodo purposes 9. Esche requires 040 hours of director de labor costs as po Vai malang overheads per Fundmatutung wird in de $2.000 per incond 5100 per other costs such as estrand property taxes Fred Sling and admitive expenses include 514000 per or 55.000 for rent $1.500 per Sand 51 500 per manter for precio Vanatiling die include soples al 15 of ses Capital expenditures de $55.000 for new manufacturing out to be purchased in Les 99.200 155,000 56000 100.000 199 200 Total Asses Liabilities Print Done Print Done Thing for the Data Table - X More info Ind budget ents, and 99 200 100 000 199 200 Accounts Receivable 32000 Raw Materials inventory 6.000 Freshed Goods Inventory 16.200 Total Current Assets Property Pant and Equipment Equipment 155 000 Les Accumulated Depreciation (55000) Total Assets $ Liabilities Current Listes Accounts Payabil s Stockholders' Equity Common Stock, no par $ 140,000 Road Earnings 38.200 Tots Stockholders' Equity 5 Total Liabilities and Stockholders Equity 1 tanto con purposes Each tre roures 0 40 hours of doc labor de labor costs $10 per hou Vanatie manutening overhead is 2 der Fred manufacturing overed includes $2.000 pertinction 510 per other costs such as surance and property taxes Freeding and strative expenses include 514 000 per orale, 53.000 per for rent 51 500 per quarter for insurance and 51 500 per quarter for depreciation Vanable selling and administrative expenses include suppo 15 of Capital expenditures include 555,000 for new manufacturing ement to be thered and paid the first quarter Cash recepts for sale on account o 70% in the quarter of the sale and 30% in the quarter og the sale, December 31, 2024. Accounts Receivable is received in the finite of 1005, uncle accounts are considered insignificant and not considered for budgeting purpose Drect materials purchases are pad 80% in the quarter purchased and 20% in the song at December 31, 2024 Accounts Payable is paid in the first of 2025 Director, manufacturing overhead, and selling and administrative in the incurred Income tax expenses propected at $3,000 per quarter and is pad in the area incurred Godley desires to maintain a minimum cash balance of $45000 and borrows from the local bankas poodied in increments of S1000 at De beginning of the quartet penal pasar made the beginning of the quarter when excess fonds are able and in increments of $1.000, mesin pot year and paid at the beginning of the quarter based on the amount outstanding from the US Quarter 13,000 185,200 199 200 Print Done Print Done re to search O BI $ TUUNU U Lului IIS IU we leal Requirements - X 1. Prepare Gridley's operating budget and cash budget for 2025 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 Gridley's annual financial budget for 2025, including budgeted income statement and budgeted balance sheet. Print Done Data Table Gridley Tire Company Balance Sheet December 31, 2024 Assets jals E led o Current Assets Cash $ 45,000 32,000 6,000 16,200 Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less. Accumulated Depreciation $ 99,200 155,000 (55,000) 100,000 199,200 Total Assets Liabilities Current Liabilities Print Done 99+ (hp astery Problem Ch Chapter 5 oter (mana 1 of 1 (1 complete) - X i Data Table 32,000 6,000 16,200 Jals bt ed on Accounts Receivable Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment Equipment Less: Accumulated Depreciation $ 99,200 155,000 (55,000) 100,000 $ 199,200 13,000 Total Assets Liabilities Current Liabilities Accounts Payable Stockholders' Equity Common Stock, no par S Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 140.000 46,200 186,200 $ 199,200 Print Done 99+ More Info Jnless otherwise noted, assume all of the following events occurred during 2024 and that any balances Even are stated as of December 31, 2024) Budgeted sales are 1,200 tires for the first quarter and expected to increase by 50 tires per quarter. - Cash sales are expected to be 30% of total sales, with the remaining 70% of sales on account. Finished Goods Inventory on December 31, 2024 consists of 600 tires at $27 each. Desired ending Finished Goods Inventory is 40% of the next quarter's sales, first quarter sales for 2026 e are expected be 1,400 tires. FIFO inventory costing method is used. Raw Materials Inventory on December 31, 2024, consists of 1,200 pounds of rubber compound used to manufacture the tires. Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound e is $5.00 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, 2025 is 1,200 pounds, indirect materials are insignificant and not considered for budgeting purposes 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 $2,000 per quarter in depreciation and $10,650 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $14,000 per quarter for salaries, $3,000 per quarter for rent: $1,500 per quarter for insurance, and $1,500 per quarter for depreciation k. Variable selling and administrative expenses include supplies at 1% of sales Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid in the first quarter i More Info 1. insignificant and not considered for budgeting purposes. g. 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 $2,000 per quarter in depreciation and $10,650 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed selling and administrative expenses include $14.000 per quarter for salaries, $3,000 per quarter for rent, $1,500 per quarter for insurance, and $1,500 per quarter for depreciation k Variable selling and administrative expenses include supplies at 1% of sales Capital expenditures include $55,000 for new manufacturing equipment to be purchased and paid in 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, 2024. Accounts Receivable is received in the first quarter of 2025, uncollectible m accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 80% in the quarter purchased and 20% in the following quarter, n. December 31, 2024 Accounts Payable is paid in the first quarter of 2025. Direct labor, manufacturing overhead and selling and administrative costs are paid in the quarter o incurred p. Income tax expense is projected at $3,000 per quarter and is paid in the quarter incurred Gridley desires to maintain a minimum cash balance of $45.000 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 6% per year and paid at the beginning of the quarter based on the amount outstanding from the previous a quarter Print Done Clear All ! 99+ Score: 0.28 of 8 pts % PM5-41A (similar to) The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $80 each Gridley is plan year by developing a master budget by quarters. Gridley's balance sheet for December 31, 2024, follows: Click the icon to view the balance sheet.) Requirement 1. Prepare Gridiey's operating budget and cash budget for 2025 by quarter. Required schedules ar sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, a Begin by preparing the sales budget Gridley Tire Company Sales Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold 1.200 1,250 1,300 1,350 5.100 Sales price per unit $ 80 S 80$ 80 S 80 $ 80 Total sales 96,000 $100,000 104,000 $ 108.000 $ 408.000 Prepare the production budget Beview the sales budget you prepared above. Gridley Tire Company Choose from any list or enter any number in the input fields and then click Check Answer. 17 parts remaining Search O 99