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

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

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

Passenger car tires	120,000
Truck tires	25,000

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:

	Truck	Passenger
Car Rubber	30lbs	10lbs
Steel belts	4lbs	1.5lbs

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

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 2008 were as follows:

Indirect materials	198,500
Indirect labor	213,200
Depreciation of building and equipment	157,500
Power and light	122,900
Total	962,100

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

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