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The Grilton Tire Company manufactures racing tire for bicices. Gritton is.Planning for the 2025 by developing a master budget by Data for Griton needed to

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The Grilton Tire Company manufactures racing tire for bicices. Gritton is.Planning for the 2025 by developing a master budget by Data for Griton needed to complete the requirements is listed below: 1. Gilton sells tires for 580 each. Sales are budgeted at 1,000 tires for the first quarter of 2025 and are expected to increase by 150 tires per quarter thereafter 2. Finished goods inventory on December 31, 2024 consists of 300 tires at 531 each 3. Desired ending Finished goods inventory is 20% of next quarters sales. FIFO inventory costing method is used 4. Raw materials inventory on December 31, 2024 consists of 600 pounds of rubber used to manufacture shetites 5. Direct material requirements are two pounds of rubber per tire. The cost of the rubber compound is 55 per pound 6. Desired ending Raw materials inventory is 50% of the next quarter's direct materiais needed for production Indirect materials are insignificant and not considered for budgeting purposes 7. Each tire requires 0.50 hours of direct labor, direct labor costs average 515 per hour. & Variable manufacturing overhead is 55 per tire 9. Fixed manufacturing overhead includes 54,500 per quarter in depreciation and $22.470 per quarter for mercoss, such as utilities, insurance and property taxes 10. Manufacturing overhead is allocated based on direct labor hours. Use the first quarter information to compute the one quarter predetermined manufacturing overhead rate since the annual information is not available Complete the seven requirements below. USE FOMULAS for subtotal and totals and to link the budgets together, Requirement 1: Prepare the Sales Budget for the first quarter of 2025 for Grilton Requirement 2: Prepare the Production Budget for the first quarter of 2025 for Grilton Requirement 3: Prepare the Direct Materials Budget for the first quarter of 2025 for Grilton Requirement 4: Prepare the Direct Labor Budget for the first quarter of 2025 for Grilton Requirement 5: Prepare the Manufacturing Overhead Budget for the first quarter of 2025 for Grilton Requirement 6: Compute the budgeted manufacturing cost per tire for 2025 (using the first quarter only information) Requirement 7: Prepare the cost of goods sold budget for the first quarter of 2025 for Grilton (FIFO inventory is used)

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