This is a 20 part problem but it is only accessed one at a time
pt 1
part 2 
assignment info
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overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. Beain by preparing the sales budaet. The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $75 each. Gridley is planning for the next 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.) Data table More info given are stated as of December 31, 2024.) a. Budgeted sales are 1,300 tires for the first quarter and expected to increase by 50 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31, 2024 consists of 200 tires at $32 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2026 are expected be 1,500 tires. FIFO inventory costing method is used. d. Raw Materials Inventory Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $4.00 per pound. f. Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending inventory for December 31,2 g. Each tire requires 0.60 hours of direct labor; direct labor costs average $25 per hour. h. Variable manufacturing overhead is $3 per tire. Data table More info i. Fixed manufacturing overhead includes $2,000 per quarter in depreciation and $11,275 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $9,500 per quarter for salaries; $1,800 per quarter for rent; $1,200 per quarter for insurance; and $1,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. I. Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 65% in the quarter of the sale and 35% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter; December 31, 2024, Accounts Payable is paid in the first quarter of 2025. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p. Income tax expense is projected at $4,500 per quarter and is paid in the quarter incurred. overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. Beain by preparing the sales budaet. The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $75 each. Gridley is planning for the next 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.) Data table More info given are stated as of December 31, 2024.) a. Budgeted sales are 1,300 tires for the first quarter and expected to increase by 50 tires per quarter. Cash sales are expected to be 20% of total sales, with the remaining 80% of sales on account. b. Finished Goods Inventory on December 31, 2024 consists of 200 tires at $32 each. c. Desired ending Finished Goods Inventory is 40% of the next quarter's sales; first quarter sales for 2026 are expected be 1,500 tires. FIFO inventory costing method is used. d. Raw Materials Inventory Direct materials requirements are two pounds of a rubber compound per tire. The cost of the compound is $4.00 per pound. f. Desired ending Raw Materials Inventory is 40% of the next quarter's direct materials needed for production; desired ending inventory for December 31,2 g. Each tire requires 0.60 hours of direct labor; direct labor costs average $25 per hour. h. Variable manufacturing overhead is $3 per tire. Data table More info i. Fixed manufacturing overhead includes $2,000 per quarter in depreciation and $11,275 per quarter for other costs, such as utilities, insurance, and property taxes. j. Fixed selling and administrative expenses include $9,500 per quarter for salaries; $1,800 per quarter for rent; $1,200 per quarter for insurance; and $1,000 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 2% of sales. I. Capital expenditures include $55,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 65% in the quarter of the sale and 35% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. n. Direct materials purchases are paid 90% in the quarter purchased and 10% in the following quarter; December 31, 2024, Accounts Payable is paid in the first quarter of 2025. o. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p. Income tax expense is projected at $4,500 per quarter and is paid in the quarter incurred
