Score: U of 20 pts 1 of 1 (u compte w score: UT P22-41A (similar to) Question The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $80 eech. Gridley is planning for the next year by developing a master budget by quarters. Gridiey's balance sheet for December 31, 2018, follows: Click the icon to view the balance sheet.) Other data for Gridley Tire Company (Click the icon to view the other data) Read the requirement Requirement 1. Prepare Gridley's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget direct materie direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, budget. Manufacturing overeed 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, 2019 First Secon Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold Salis priceperunt Total Enter any number in the edit fields and then click Check Answer. 18 Darts remaining Clear All Check Ans ework: Chapter 22 Comprehensi 1 of of 20 pts _ Data Table Gridley Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ 64,000 Accounts Receivable 32,000 Raw Materials Inventory 2,800 5,600 Finished Goods Inventory Total Current Assets $ 104,400 Property, Plant, and Equipment: Equipment 142.000 (39.000) Less: Accumulated Depreciation 103,000 That Acoste s 207,400 Print Done exthomeworldd501123438&questionld18flushed false&cid=6413115&conterwineyes ey: Accounting pter 22 Comprehensive Budgeting Problem 1 of 1 (0 completo) 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 1.600 tires for the first quarter and expected to increase by 200 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 200 tires at $28 each. Desired ending Finished Goods Inventory is 50% of the next quarter's sales; first quarter sales for 2020 are c. expected be 2,400 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. $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 400 pounds; indirect materials are 1. Insignificant and not considered for budgeting purposes. 9. Each tire requires 0.70 hours of direct labor, direct labor costs average 514 per hour. h Variable manufacturing overhead is $1 per tire Fixed manufacturing overhead includes $5,000 per quarter in depreciation and $68,100 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed seiling and administrative expenses include $9,500 per quarter for salaries: 51,800 per quarter for Print Done Score: U of 20 pts 1 of 1 (u compte w score: UT P22-41A (similar to) Question The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $80 eech. Gridley is planning for the next year by developing a master budget by quarters. Gridiey's balance sheet for December 31, 2018, follows: Click the icon to view the balance sheet.) Other data for Gridley Tire Company (Click the icon to view the other data) Read the requirement Requirement 1. Prepare Gridley's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget direct materie direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, budget. Manufacturing overeed 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, 2019 First Secon Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold Salis priceperunt Total Enter any number in the edit fields and then click Check Answer. 18 Darts remaining Clear All Check Ans ework: Chapter 22 Comprehensi 1 of of 20 pts _ Data Table Gridley Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash $ 64,000 Accounts Receivable 32,000 Raw Materials Inventory 2,800 5,600 Finished Goods Inventory Total Current Assets $ 104,400 Property, Plant, and Equipment: Equipment 142.000 (39.000) Less: Accumulated Depreciation 103,000 That Acoste s 207,400 Print Done exthomeworldd501123438&questionld18flushed false&cid=6413115&conterwineyes ey: Accounting pter 22 Comprehensive Budgeting Problem 1 of 1 (0 completo) 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 1.600 tires for the first quarter and expected to increase by 200 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 200 tires at $28 each. Desired ending Finished Goods Inventory is 50% of the next quarter's sales; first quarter sales for 2020 are c. expected be 2,400 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. $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 400 pounds; indirect materials are 1. Insignificant and not considered for budgeting purposes. 9. Each tire requires 0.70 hours of direct labor, direct labor costs average 514 per hour. h Variable manufacturing overhead is $1 per tire Fixed manufacturing overhead includes $5,000 per quarter in depreciation and $68,100 per quarter for other costs, such as utilities, insurance, and property taxes. Fixed seiling and administrative expenses include $9,500 per quarter for salaries: 51,800 per quarter for Print Done