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The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $ 7 5 each. d . Raw Materials Inventory on December 3
The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $ each. d Raw Materials Inventory on December consists of pounds of rubber compound used to manufacture the tires. e Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $ per pound. f Desired ending Raw Materials Inventory is of the next quarter's direct materials needed for production; desired ending inventory for December is pounds; indirect materials are insignificant and not considered for budgeting purposes. g Each tire requires hours of direct labor; direct labor costs average $ per hour. h Variable manufacturing overhead is $ per tire. i Fixed manufacturing overhead includes $ per quarter in depreciation and $ per quarter for other costs, such as utilities, insurance, and property taxes. j Fixed selling and administrative expenses include $ per quarter for salaries; $ per quarter for rent; $ per quarter for insurance; and $ per quarter for depreciation. k Variable selling and administrative expenses include supplies at of sales. I. Capital expenditures include $ for new manufacturing equipment, to be purchased and paid in the first quarter. m Cash receipts for sales on account are in the quarter of the sale and in the quarter following the sale; December Accounts Receivable is received in the first quarter of ; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n Direct materials purchases are paid in the quarter purchased and in the following quarter; December Accounts Payable is paid in the first quarter of o Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p Income tax expense is projected at $ per quarter and is paid in the quarter incurred. q Gilder desires to maintain a minimum cash balance of $ and borrows from the local bank as needed in increments of $ 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 $; interest is per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Unless otherwise noted, assume all of the following events occurred during and that any balances given are stated as of December a Budgeted sales are tires for the first quarter and expected to increase by tires per quarter. Cash sales are expected to be of total sales, with the remaining of sales on account. Data table tableAssetsCurrent Assets:Cash$Accounts Receivable,,Raw Materials Inventory,,Finished Goods Inventory,,Total Current Assets,,,$Property Plant, and Equipment:EquipmentLess: Accumulated Depreciation,,Total Assets,,,$LiabilitiesCurrent Liabilities:Accounts Payable,,,$Stockholders EquityCommon Stock, no par,$Retained Earnings,,Total Stockholders' Equity,,,,Total Liabilities and Stockholders' Equity,,,$ e help
The Gilder Tire Company manufactures racing tires for bicycles. Gilder sells tires for $ each. d Raw Materials Inventory on December consists of pounds of rubber compound
used to manufacture the tires.
e Direct materials requirements are two pounds of a rubber compound per tire. The cost of the
compound is $ per pound.
f Desired ending Raw Materials Inventory is of the next quarter's direct materials needed for
production; desired ending inventory for December is pounds; indirect materials are
insignificant and not considered for budgeting purposes.
g Each tire requires hours of direct labor; direct labor costs average $ per hour.
h Variable manufacturing overhead is $ per tire.
i Fixed manufacturing overhead includes $ per quarter in depreciation and $ per quarter
for other costs, such as utilities, insurance, and property taxes.
j Fixed selling and administrative expenses include $ per quarter for salaries; $ per
quarter for rent; $ per quarter for insurance; and $ per quarter for depreciation.
k Variable selling and administrative expenses include supplies at of sales.
I. Capital expenditures include $ for new manufacturing equipment, to be purchased and paid
in the first quarter.
m Cash receipts for sales on account are in the quarter of the sale and in the quarter
following the sale; December Accounts Receivable is received in the first quarter of ;
uncollectible accounts are considered insignificant and not considered for budgeting purposes.
n Direct materials purchases are paid in the quarter purchased and in the following quarter;
December Accounts Payable is paid in the first quarter of
o Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter
incurred.
p Income tax expense is projected at $ per quarter and is paid in the quarter incurred.
q Gilder desires to maintain a minimum cash balance of $ and borrows from the local bank as
needed in increments of $ 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 $; interest
is per year and paid at the beginning of the quarter based on the amount outstanding from the
previous quarter. Unless otherwise noted, assume all of the following events occurred during and that any balances
given are stated as of December
a Budgeted sales are tires for the first quarter and expected to increase by tires per quarter.
Cash sales are expected to be of total sales, with the remaining of sales on account.
Data table
tableAssetsCurrent Assets:Cash$Accounts Receivable,,Raw Materials Inventory,,Finished Goods Inventory,,Total Current Assets,,,$Property Plant, and Equipment:EquipmentLess: Accumulated Depreciation,,Total Assets,,,$LiabilitiesCurrent Liabilities:Accounts Payable,,,$Stockholders EquityCommon Stock, no par,$Retained Earnings,,Total Stockholders' Equity,,,,Total Liabilities and Stockholders' Equity,,,$
e help
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