The Company ng tres for b next year by g ambut by w orse michok the icon to view the balance sheet) r e ach for December 31, 2018 is planning for the Other data for The Company con to viewe d ) Read the forme Requirement 1. Prepare Gider's operwing budget and budget for 2019 by Rourches and business but production budget direct material budget direct labor budget, manufacturing overhead budget cost of goods sold budget, selling and administrative expense budowlschedule of cash recipes, schedule of cash payments, and cash budget Manufacturing overhead costs are located based on direct labor hours. Round alcolation to the nearest dollar Begin by preparing the sales budget Gilder Tire Company Sales Budget For the Year Ended December 31, 2010 Second Th The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $80 each. Gilder is planning for the next year by developing a master budget by quarters. Gilder's balance sheet for December 31, 2018, follows: Click the icon to view the balance sheet.) Other data for Gilder Tire Company (Click the icon to view the other data.) Read the requirements Total sales Prepare the production budget Review the sales budget you prepared above. First Fourth Quarter Total Gilder Tire Company Production Budget For the Year Ended December 31, 2019 Second Third Quarter Quarter Quarter Budgeted tires to be sold 1,000 1,250 1.500 Plus: Desired tires in ending inventory 500 700 Total tires needed 1,500 1,850 2,200 Less: Tires in beginning inventory 200 600 1,300 1,350 1,600 Budgeted tires to be produced 1.750 5,500 800 600 800 2,550 6,300 500 700 200 1.850 6.100 The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $80 each. Gilder is planning for the next year by developing a master budget by quarters, Gilder's balance sheet for December 31, 2018, follows: Click the icon to view the balance sheet.) other data for Gilder Tire Company (Click the icon to view the other data.) Read the requirements Review the production budget you prepared above. Gilder Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Third Fourth Quarter Quarter Total Direct materials per tire Direct materials needed for production Plus Total direct materials needed Less: Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials More Into Uneotherwise noted me of the curred during 2018 and that w a s given are states of December 31, 2018) .. Budete sa r e 1.000 times for the first quarter and expected to increase by 250 tires per quarter Cash sales are expected to be 20% of total sales with the remaining 80% of sales on account b. Finished Goods invertory on December 31, 2018 consists of 200 trs 24 each c. Desired ending Finished Goods Inventory is 40% of the next Quarter's sales for sale for 2020 are expected be 2.000 tres FIFO inventory costing method is used d. Raw Materials invertory on December 31, 2018, consists of 400 pounds of rubber compound used to manufacture the tires . Direct material requirements are 2 pounds of a compound per tre The cost of the compound is $5.00 per pound Desired ending Raw Material inventory of the next quarter's direct materials needed for production desired ending inventory for December 31, 2010 is 400 pounds indirect materials are insignificant and not considered for budgeting purposes 2. Each tie reguires 0.30 hours of director de co verage $20 per hour h. Variable manufacturing overhead is 12 per tre Fixed manufacturing overhead includes $4500 per quarter in depreciation and $1.000 per quarter for other costs, such as the insurance and property taxes Fedeling and administrative experces include 50.000 per quarter for stories 55,100 per quarter for rent $900 per quarter for insurance and $500 per quarter for depreciation Variable seling and in v expenses include supplies all of sales Capital expenditures include $30.000 for new manufacturing equipment to be purchased and paid in the first quarter Cash receipts for sale on accountare 80% in the quarter of the sale and 20% in the quarter foliowing the sale December 31, 2018 Accounts Receivais received in the first quarter of 2019. uncollectible accounts are considered instant and not considered for budgeting purposes Direct materiais purchases are paid in the quarter purchased and 20% in the following quarter December 31, 2018 Accounts Payables and in the first quarter of 2019 .. Direct labor manufacturing overhead and sing and administratives we pad in the quarter incurred income tax expenses projected at $3.500 per quarter and spadinhe quarter incurred Gde desto matam u cash balance of $70.000 and bomow from the local bank as died in increments of $1.000 at the beginning of the quarter principal payments we made the beginning of the quarter when se nds a n d in increment of $1.000 estis per year and paid at the beginning of the quarter based on the amount o d ing to the previous quarter P i Data Table Gilder Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash Accounts Receivable 73,000 22,000 Raw Materials Inventory 2,000 4,800 101,800 Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation 142,000 (68,000) 74,000 Total Assets 175,800 Liabilities i Data Table Raw Materials Inventory Finished Goods Inventory Total Current Assets Property, Plant, and Equipment: 101,800 Equipment 142,000 Less: Accumulated Depreciation (68,000) 74,000 175,800 Total Assets Liabilities Current Liabilities: Accounts Payable 10,000 Stockholde 30,000 Common Stock, no par Retained Earnings Total Stockholders' Equity 165,800 175,800 Total Liabilities and Stockholders' Equity The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $80 each. Gilder is planning for the next year by developing a master budget by quarters. Gilder's balance sheet for December 31, 2018, follows: E (Click the icon to view the balance sheet.) Other data (Click to Read the re Review the production budget you prepared above. Gilder Tire Company Direct Materials Budget For the Year Ended December 31, 2019 First Second Quarter Quarter Third Fourth Quarter Quarter Budgeted tires to be produced Budgeted tires to be sold Desired direct materials in ending inventory Direct materials in beginning inventory Less: Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials