This Website Has Been Moved to a New Link


Loading

Glide Tire Company's budgeted unit sales for the year 2008 were

Price: $3.50


Glide Tire Company's budgeted unit sales for the year 2008 were:

Passenger car tires 120,000
Truck tires 25,000
The budgeted selling price for truck tires was $200 per tire and for passenger car tires was $65 per tire. He beginning finished goods inventories was expected to be 2,000 truck tires and 5,000 passenger tires, for a total cost of $326,478, with desired ending inventories at 2,500 and 6,000, respectively, with a total cost of $400,510. There was no anticipated beginning or ending work in process inventory for either type of tire.

The standard materials quantities for each type of fire were as follows:
Truck Passenger
Car Rubber 30lbs 10 lbs
Steel belts 4 lbs 1.5 lbs

The purchase prices of rubber and steel were $2 and $3 per pound, respectively. The desired ending inventories for rubber and steel were 75,000 and 7,500 pounds respectively. The estimated beginning inventories for rubber and steel were 60,000 and 6,000 pounds, respectively.
The direct labor hours required for each type of tire were as follows:
Molding Department Finishing Department

Truck Tire 0.25 0.15
Passenger car tire 0.10 0.05
The direct labor rate for each department is as follows:
Molding department $15 per hour
Finishing department $13 per hour
Budgeted factory overhead costs for 2008 were as follows:
Indirect materials 198,500
Indirect labor 213,200
Depreciation of building and equipment 157,500
Power and light 122,900
Total 692,100

Required:
Prepare each of the following budgets for Glide for the year ended 2008:
1. Sales budget
2. Production budget
3. Direct material budget
4. Direct labor budget
5. Factory overhead budget
6. Cost of goods sold budget

No comments:

Post a Comment