3,450 550 The Cooke Batting Company manufactures wood baseball bats. Cooke's two primary products are a youth bat, designed for children and young teens, and an adult bat, designed for high school and college-aged players. Cooke sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $60; the adult bat sells for $85. Cooke's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Cooke's balance sheet for December 31, 2018, and other data for the first quarter of 2019 follow: (Click the icon to view the balance sheet.) (Click the icon to view the other data.) Read the requirements. A Data Table - X Bats Bats Total Budgeted bats to be sold 1,400 2,900 4,300 i More Info Plus: Desired bats in ending inventory 200 750 Cooke Batting Company Total bats needed 1,600 5,050 Balance Sheet Less: Bats in beginning inventory 1,110 December 31, 2018 a. Budgeted sales are 1,400 youth bats and 2,900 adult bats. 1,050 2,890 3.940 b. Finished Goods Inventory on December 31, 2018, consists of 550 youth bats Budgeted bats to be produced Assets at $17 each and 560 adult bats at $11 each. Current Assets c. Desired ending Finished Goods Inventory is 200 youth bats and 550 adult Requirement 3. Prepare Cooke's direct materials budget, direct labor budget, and manufacturing overhead budget for bats; FIFO inventory costing method is used. Cash $ 32,000 Begin by preparing the direct materials budget d. Direct materials requirements are 42 ounces of wood per youth bat and 62 Accounts Receivable 20,300 ounces of wood per adult bat. The cost of wood is $0.35 per ounce. Cooke Batting Company Raw Materials Inventory 9,100 e. Raw Materials Inventory on December 31, 2018, consists of 26,000 ounces of Direct Materials Budget wood at $0.35 per ounce. 15,510 Finished Goods Inventory f. Desired ending Raw Materials Inventory is 26,000 ounces (indirect materials For the Quarter Ended March 31, 2019 Total Current Assets 76,910 are insignificant and not considered for budgeting purposes). Youth Adult g. Each bat requires 0.5 hours of direct labor, direct labor costs average $20 per Property, Plant, and Equipment: hour. Bats Bats Total Equipment 140,000 h. Variable manufacturing overhead is $0.60 per bat Less: Accumulated Depreciation (40,000) 100,000 i. Fixed manufacturing overhead includes $700 per quarter in depreciation and $6,786 per quarter for other costs, such as insurance and property taxes. Direct materials per bat (ounces) $ 176,910 Total Assets j. Fixed selling and administrative expenses include $10,000 per quarter for Direct materials needed for production salaries; $4,500 per quarter for rent; $1,900 per quarter for insurance, and Liabilities $450 per quarter for depreciation. Plus: Current Liabilities: k. Variable selling and administrative expenses include supplies at 5% of sales. Total direct materials needed Accounts Payable $ 10,500 Less: Stockholders' Equity Print Done Budgeted purchases of direct materials Common Stock, no par 70,000 Direct materials cost per ounce Retained Earnings 96,410 Budgeted cost of direct materials 166,410 Total Stockholders' Equity $ 176,910 Total Liabilities and Stockholders' Equity