glide tire company s budgeted unit sales for the year 2008 were 492409

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

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:

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

The direct labor rate for each department is as follows:

Budgeted factory overhead costs for 2008 were as follows:

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