Sales, production, direct materials, direct labor, and fac- tory overhead budgets LO2 YOTO Tire Company Yoto Tire Company's budgeted unit sales for the year 2011 were: Passenger car tires .... 60,000 Truck tires 12,500 The budgeted selling price for truck tires was $300 per tire, and that for passenger car tires .was $90 per tire. The beginning finished. goods inventories were expected to be 2,500 truck tires and 6,000 passenger tires, for a total cost of $400,510, with desired ending inventories at 2,000 and 5,000, respectively, and 'a total cost of $326,478. 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: Passenger Car Truck Rubber 35 Ib 15 Ib 4.5 lb 2.0 Ib Steel belts The purchase prices of rubber and steel were $3 and $2 per pound, respectively. The desired ending inventories for rubber and steel were 60,000 and 6,000 pounds, respectively. The estimated beginning tively. The direct labor hours required for each type of tire were as follows: Finishing inventories for rubber and steel were 75,000 and 7,500 pounds, respec- Molding Department Department 0.10 0.20 Truck tire.... 0.10 0.05 Passenger car tire....... The direct labor rate for each department is as follows: $13 per hour Molding Department... Finishing Department .. $15 per hour Budgeted factory overhead costs for 2011 were as follows: $170,560 Indirect materials. 158,800 98,320 Indirect labor... Depreciation of building and equipment 126,000 Power and light $553,680 Total Required: Prepare each of the following budgets for Yoto for the year ended 2011: 1. Sales budget 2. Production budget 3. Direct material budget

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Sales, production, direct materials, direct labor, and fac-
tory overhead budgets
LO2
YOTO Tire Company
Yoto Tire Company's budgeted unit sales for the year 2011 were:
Passenger car tires
60,000
Truck tires ....
12,500
The budgeted selling price for truck tires was $300 per tire, and that for
passenger car tires was $90 per tire. The beginning finished. goods
inventories were expected to be 2,500 truck tires and 6,000 passenger
tires, for a total cost of $400,510, with desired ending inventories at 2,000
and 5,000, respectively, and 'a total cost of $326,478. 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:
Passenger
Car
Truck
Rubber
35 Ib
15 Ib
4.5 Ib
2.0 Ib
Steel belts
The purchase prices of rubber and steel were $3 and $2 per pound,
respectively. The desired ending inventories for rubber and steel were
60,000 and 6,000 pounds, respectively. The estimated beginning
tively. The direct labor hours required for each type of tire were as follows:
Finishing
inventories for rubber and steel were 75,000 and 7,500 pounds, respec-
Molding
Department
Department
0.10
0.20
Truck tire
0.10
0.05
Passenger car tire
The direct labor rate for each department is as follows:
$13 per hour
Molding Department
$15 per hour
Finishing Department
Budgeted factory overhead costs for 2011 were as follows:
$170,560
Indirect materials
158,800
Indirect labor......
98,320
Depreciation of building and equipment
126,000
Power and light
$553.680
Total
Required:
Prepare each of the following budgets for Yoto 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
Transcribed Image Text:Sales, production, direct materials, direct labor, and fac- tory overhead budgets LO2 YOTO Tire Company Yoto Tire Company's budgeted unit sales for the year 2011 were: Passenger car tires 60,000 Truck tires .... 12,500 The budgeted selling price for truck tires was $300 per tire, and that for passenger car tires was $90 per tire. The beginning finished. goods inventories were expected to be 2,500 truck tires and 6,000 passenger tires, for a total cost of $400,510, with desired ending inventories at 2,000 and 5,000, respectively, and 'a total cost of $326,478. 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: Passenger Car Truck Rubber 35 Ib 15 Ib 4.5 Ib 2.0 Ib Steel belts The purchase prices of rubber and steel were $3 and $2 per pound, respectively. The desired ending inventories for rubber and steel were 60,000 and 6,000 pounds, respectively. The estimated beginning tively. The direct labor hours required for each type of tire were as follows: Finishing inventories for rubber and steel were 75,000 and 7,500 pounds, respec- Molding Department Department 0.10 0.20 Truck tire 0.10 0.05 Passenger car tire The direct labor rate for each department is as follows: $13 per hour Molding Department $15 per hour Finishing Department Budgeted factory overhead costs for 2011 were as follows: $170,560 Indirect materials 158,800 Indirect labor...... 98,320 Depreciation of building and equipment 126,000 Power and light $553.680 Total Required: Prepare each of the following budgets for Yoto 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
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