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King Tire Co.'s budgeted unit sales for the year 2016 were: Passenger-car tires.. Truck tires 120,000 25,000 The budgeted selling price for truck tires was $200 per tire, and for passenger car tires it 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: Rubber.. Steel belts Truck Passenger Car 30 lb 10 lb 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 lb, respectively. The estimated beginning inventories for rubber and steel were 75,000 and 7,000 lb, respectively. The direct labor hours required for each type of tire were as follows: Truck tire...... Passenger car tire. Molding Finishing Department Department 0.25 0.15 0.10 0.05 The direct labor rate for each department is as follows: Molding Department ... Finishing Department Budgeted factory overhead costs for 2016 were as follows: Indirect materials..... Indirect labor Depreciation of building and equipment Power and light Total $15 per hour $13 per hour $198,500 213,200 157,500 122,900 $692,100 Required: Prepare each of the following budgets for King for the year ended December 31, 2016: 1. Sales budget. 2. Production budget. 3. Direct material budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Cost of goods sold budget.

King Tire Co.'s budgeted unit sales for the year 2016 were: Passenger-car tires.. Truck tires 120,000 25,000 The budgeted selling price for truck tires was $200 per tire, and for passenger car tires it 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: Rubber.. Steel belts Truck Passenger Car 30 lb 10 lb 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 lb, respectively. The estimated beginning inventories for rubber and steel were 75,000 and 7,000 lb, respectively. The direct labor hours required for each type of tire were as follows: Truck tire...... Passenger car tire. Molding Finishing Department Department 0.25 0.15 0.10 0.05 The direct labor rate for each department is as follows: Molding Department ... Finishing Department Budgeted factory overhead costs for 2016 were as follows: Indirect materials..... Indirect labor Depreciation of building and equipment Power and light Total $15 per hour $13 per hour $198,500 213,200 157,500 122,900 $692,100 Required: Prepare each of the following budgets for King for the year ended December 31, 2016: 1. Sales budget. 2. Production budget. 3. Direct material budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Cost of goods sold budget.

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 2P: Sales, production, direct materials, direct labor, and factory overhead budgets King Tire Co.s...
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King Tire Co.'s budgeted unit sales for the year 2016 were: Passenger-car tires.. Truck tires 120,000 25,000 The budgeted selling price for truck tires was $200 per tire, and for passenger car tires it 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: Rubber.. Steel belts Truck Passenger Car 30 lb 10 lb 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 lb, respectively. The estimated beginning inventories for rubber and steel were 75,000 and 7,000 lb, respectively. The direct labor hours required for each type of tire were as follows: Truck tire...... Passenger car tire. Molding Finishing Department Department 0.25 0.15 0.10 0.05
Transcribed Image Text:King Tire Co.'s budgeted unit sales for the year 2016 were: Passenger-car tires.. Truck tires 120,000 25,000 The budgeted selling price for truck tires was $200 per tire, and for passenger car tires it 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: Rubber.. Steel belts Truck Passenger Car 30 lb 10 lb 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 lb, respectively. The estimated beginning inventories for rubber and steel were 75,000 and 7,000 lb, respectively. The direct labor hours required for each type of tire were as follows: Truck tire...... Passenger car tire. Molding Finishing Department Department 0.25 0.15 0.10 0.05
The direct labor rate for each department is as follows: Molding Department ... Finishing Department Budgeted factory overhead costs for 2016 were as follows: Indirect materials..... Indirect labor Depreciation of building and equipment Power and light Total $15 per hour $13 per hour $198,500 213,200 157,500 122,900 $692,100 Required: Prepare each of the following budgets for King for the year ended December 31, 2016: 1. Sales budget. 2. Production budget. 3. Direct material budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Cost of goods sold budget.
Transcribed Image Text:The direct labor rate for each department is as follows: Molding Department ... Finishing Department Budgeted factory overhead costs for 2016 were as follows: Indirect materials..... Indirect labor Depreciation of building and equipment Power and light Total $15 per hour $13 per hour $198,500 213,200 157,500 122,900 $692,100 Required: Prepare each of the following budgets for King for the year ended December 31, 2016: 1. Sales budget. 2. Production budget. 3. Direct material budget. 4. Direct labor budget. 5. Factory overhead budget. 6. Cost of goods sold budget.
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