Homework: Chapter 22 Comprehensive Budgeting Pro Score: 1.98 of 20 pts 1 of 1 (1 complete) P22-41A (similar to) The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $80 Other data for Gridley Tire Compa each. Gridley is planning for the next year by developing a master budget by quarters. Gridley's (Click the icon to view the othe balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Read the requirements Production Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be sold 1,600 1,800 2,000 2,200 7,600 Plus Desired tires in ending inventory 900 1.000 1.100 1,200 1,200 Total tiros needed 2,500 2,800 3,100 3,400 8.800 Less: 900 Tires in beginning inventory 200 1,000 1,100 200 2,300 1.900 Budgeted tires to be produced 2,100 2 300 8,600 Propare the direct materials budget. Ravlow the production budget you prepared above Gridley Tire Company Balance Sheet December 31, 2018 Assets Current Assets: Cash S 64,000 32,000 Accounts Receivable Raw Materials Inventory 2,800 5,600 Finished Goods Inventory 104.400 Total Current Assets Property, Plant, and Equipment Equipment 142.000 130 ton Print Done Comprehensive Budgeting Proble 1 of 1 (1 complete) Property, Plant, and Equipment: Equipment 142.000 (39,000) 103,000 Less: Accumulated Depreciation $ Total Assets 207,400 Liabilities Current Liabilities: Accounts Payable $ 10,000 Stockholders' Equity $ Common Stock, no par 160,000 37 400 Retained Earnings Total Stockholders' Equity 197,400 207,400 Total Liabilities and Stockholders' Equity Print Done * 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 f. insignificant and not considered for budgeting purposes. Each tire requires 0.70 hours of direct labor, direct labor costs average $14 per hour. h. Variable manufacturing overhead is $1 per tire. Fixed manufacturing overhoud Includes $5,000 per quarter in depreciation and $68,100 per quarter for Print Done prehensive Budgeting Proble Score: 1.98 of 20 pts 1 of 1 (1 complete) P22-41A (similar to) The Gridley Tire Company manufactures racing tires for bicycles. Gridley sells tires for $80 Other data for Gridley Tire Company: each. Gridley is planning for the next year by developing a master budget by quarters. Gridley's(Click the icon to view the other data.) balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Read the requirements Quarter Quarter Quarter Quarter Total Budgeted tires to be produced Direct materials per tiro Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per pound Budgeted cost of direct materials Choose from any list or enter any number in the input fields and then click Cherr