the budgeted selling price for truck tires was $200 per tire and for passenger tires was $65 per tire. The beginning finished good inventories were expected to be 2,000 truck tires and 5,000 passenger tires, for a total cost of $328,478, 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 tire were as follows: Rubber, 30 pounds, truck and 10 pounds, passenger car. Steel Belts, 4 pounds for truck and 1.5 pounds for passenger car steel belts. 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 7,5000 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: truck tire, .25 for molding and .15 for finishing. passenger car tire, .10 for molding department, and .05 for finishing department. The direct labor rate for each department is as follows: molding department: $15 per hour and finishing department: $13 per hour. Budgeted factory overhead costs for 2008 were as follows: indirect materials: $198,500, indirect labor: $213,2000, depreciation of building and equipment: $157,500 and power and light: $122,900. Total of budgeted factor overhead costs: $692,100. Required: Prepare each of the following budgets for Glide for the year ended 2008: sales, production, direct material, direct labor, factory overhead and costs of goods sold budget. A listing of budgeted selling and administrative expenses for Glide Tire Company in P7-2 for the year ended December 31, 2008, were as follows: advertising expense: $942,000, office rent expense: $125,000, office salaries expense: $821,000, office supplies expense: $45,500, officers' salaries expense: $661,000, sales salaries expense: $868,000, telephone and fax expense: $33,500 and travel expense: $443,000. Required: prepare a selling and administrative expenses budget, in good form, for the year 2008. Using the information above and the budgets prepared in P7-2, prepare a budgeted income statement for the year 2008, assuming an income tax rate of 40%.,Thanks.
Paper#11209 | Written in 18-Jul-2015Price : $25