Question

Other data for Giseppe Tire Company: (Click the icon to view the other data.) The Giseppe Tire Company manufactures racing tires for bicycles. Giseppe sells tires for $80 each. Giseppe is planning for the next year by developing a master budget by quarters. Giseppe's balance sheet for December 31, 2018, follows: (Click the icon to view the balance sheet.) Read the requirements. Requirement 1. Prepare Giseppe's operating budget and cash budget for 2019 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. Round all calculations to the nearest dollar. Begin by preparing the sales budget. Giseppe Tire Company Sales Budget For the Year Ended December 31, 2019 First Second Third Fourth Quarter Quarter Quarter Quarter 1,600 1,750 1,900 2,050 $ 80 | $ 80 $ 80 || $ 80 | $ Budgeted tires to be sold Total 7,300 80 Sales price per unit $ 128,000 $ 140,000 | $ 152,000 || $ 164,000 || $ 584,000 Total sales Prepare the production budget. Review the sales budget you prepared above.

Answer 1

Total Third Quarter 38,380 Third Quarter Fourth Quarter 27,854 Fourth Quarter 1,51,620 Total Cash Payments First Second Quarter Quarter Total direct Materials purchases 49,856 35,530 First Second Quarter Quarter Cash Payments Accounts Payable balance Dec 31,2018 15,000 1 st Otr - Otr 1 direct materialpurchases paid in Qtr 1 | 39.885 | 1 st Qtr - Qtr 1 direct materialpurchases paid in Qtr 2 9,971 2nd Qtr - Qtr 2 direct materialpurchases paid in Qtr 2 28,424 2nd Qtr - Qtr 2 direct materialpurchases paid in Qtr 3 3rd Qtr - Qtr 3 direct materialpurchases paid in Qtr 3 3rd Qtr - Qtr 3 direct materialpurchases paid in Qtr 4 14thQtr - Otr 4 direct materialpurchases paid in Qtr 4 Total Payments for direct materials 54,885 38,395 7,106 30,704 15,000 39,885 9,971 28,424 7,106 30,704 7,676 22,283 1,61,049 7,676 22,283 29,959 37,810 |