(Solved): The TintedTinted Toy Company manufactures toy building block sets for children. TintedTinted is ...

The TintedTinted Toy Company manufactures toy building block sets for children. TintedTinted is planning for 20252025 by developing a master budget by quarters. TintedTinted​'s balance sheet for DecemberDecember 3131​, 20242024​, ​follows: LOADING... ​(Click the icon to view the balance​ sheet.) Other budget data for TintedTinted Toy​ Company: LOADING... ​(Click the icon to view the other​ data.) Read the requirements LOADING... . Question content area bottom Part 1 Requirement 1. Prepare Tinted'sTinted's operating budget and cash budget for 20252025 by quarter. Required schedules and budgets​ include: sales​ budget, production​ budget, direct materials​ budget, direct labor​ budget, manufacturing overhead​ budget, cost of goods sold​ budget, selling and administrative expense​ budget, schedule of cash​ receipts, schedule of cash​ payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. ​(Round all calculations to the nearest​ dollar.) Begin by preparing the sales budget. Tinted Toy Company Sales Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted sets to be sold 1,500 1,550 1,600 1,650 6,300 Sales price per unit $90 $90 $90 $90 $90 Total sales $135,000 $139,500 $144,000 $148,500 $567,000 Part 2 Prepare the production budget. Review the sales budget you prepared above. LOADING... Tinted Toy Company Production Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Requirements 1. Prepare Tinted's operating budget and cash budget for 2025 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. (Round all calculations to the nearest dollar.) 2. Prepare Tinted's annual financial budget for 2025, including budgeted income statement and budgeted balance sheet. 3. Tinted sold 6,400 sets in 2025 , and its actual operating income was as follows: More info Sets are budgeted to sell for \( \$ 90 \) per set. b. Finished Goods Inventory on December 31, 2024, consists of 100 sets at \( \$ 35 \) each. c. Desired ending Finished Goods Inventory is \( 30 \% \) of the next quarter's sales; first quarter sales for 2026 are expected to be 1,700 sets. FIFO inventory costing method is used. d. Raw Materials Inventory on December 31, 2024, consists of 400 pounds. Direct materials requirement is four pounds per set. The cost is \( \$ 1 \) per pound. e. Desired ending Raw Materials Inventory is \( 10 \% \) of the next quarter's direct materials needed for production; desired ending inventory for December 31, 2025, is 400 pounds; indirect materials are insignificant and not considered for budgeting purposes. f. Each set requires 0.20 hours of direct labor; direct labor costs average 8 per hour. g. Variable manufacturing overhead is \( \$ 1.60 \) per set. h. Fixed manufacturing overhead includes \( \$ 6,000 \) per quarter in depreciation and \( \$ 8,091 \) per quarter for other costs, such as utilities, insurance, and property taxes. i. Fixed selling and administrative expenses include \( \$ 14,000 \) per quarter for salaries; \( \$ 1,800 \) per quarter for rent; \( \$ 450 \) per quarter for insurance; and \( \$ 500 \) per quarter for depreciation. j. Variable selling and administrative expenses include supplies at \( 2 \% \) of sales. k. Capital expenditures include \( \$ 50,000 \) for new manufacturing equipment, to be purchased and paid for in the first quarter. I. Cash receipts for sales on account are \( 50 \% \) in the quarter of the sale and \( 50 \% \) in the quarter following the sale; Accounts Receivable balance on December 31, 2024, is expected to be received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. m. Direct materials purchases are paid \( 60 \% \) in the quarter purchased and \( 40 \% \) in the following quarter; Accounts Payable balance on December 31, 2024, is expected to be paid in the first quarter of 2025. n. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. o. Income tax expense is projected at \( \$ 2,500 \) per quarter and is paid in the quarter incurred. p. Tinted desires to maintain a minimum cash balance of \( \$ 25,000 \) and borrows from the local bank as needed in increments of \( \$ 1,000 \) at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of \( \$ 1,000 \); interest is \( 4 \% \) per year and paid at the Data table Requirements 6. Explain why the flexible budget performance report provides more useful information to Tinted's managers than the static budget per