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Cruise Tire Company_Budgets

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Question;Cruise Tire Company?s budgeted unit sales for the;year 2011 were;Passenger car tires................................. 120,000;Truck tires......................................... 25,000;The budgeted selling price for truck tires was $200;per tire, and that for passenger car tires was $65 per tire.;The beginning finished goods inventories were;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;tire were as follows;Truck;Passenger Car;Rubber...................................... 30 lb 10 lb;Steel belts................................... 4 lb 1.5 lb;The purchase prices of rubber and steel were $2 and;$3 per pound, respectively.;The desired ending inventories for rubber and steel;were 60,000 and 6,000 pounds, respectively.;The estimated beginning inventories for rubber and;steel were 75,000 and 7,000 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 2011 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 Cruise for the year ended 2011;1. Sales budget.;2. Production budget.;3. Direct material budget.;4. Direct labor budget.;5. Factory overhead budget.;6. Cost of;goods sold budget.

 

Paper#44648 | Written in 18-Jul-2015

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