40,000 22,800 4,400 15,930 $ 83,130 Requirements December 31, 2024 1. Prepare Irwin's sales budget for the first quarter of 2025. Assets 2. Prepare Irwin's production budget for the first quarter of 2025. 3. Prepare Irwin's direct materials budget, direct labor budget, and manufacturing overhead Current Assets: budget for the first quarter of 2025. Round the predetermined overhead allocation rate to Cash $ two decimal places. The overhead allocation base is direct labor hours. 4. Prepare Irwin's cost of goods sold budget for the first quarter of 2025. Accounts Receivable 5. Prepare Irwin's selling and administrative expense budget for the first quarter of 2025. Raw Materials Inventory Additional Information Finished Goods Inventory a. Budgeted sales are 2,000 youth bats and 3,600 adult bats. Total Current Assets b. Finished Goods Inventory on December 31, 2024, consists of 550 youth bats at $11 each and 520 adult bats at $19 each. Property, Plant, and Equipment: c. Desired ending Finished Goods Inventory is 550 youth bats and 320 adult bats; FIFO Equipment inventory costing method is used. Less: Accumulated Depreciation d. Direct materials requirements are 52 oz of wood per youth bat and 62 oz of wood per adult bat. The cost of wood is $0.20 per ounce. Total Assets e. Raw Materials Inventory on December 31, 2024, consists of 22,000 oz of wood at $0.20 Liabilities per oz. f. Desired ending Raw Materials Inventory is 22,000 oz (indirect materials are insignificant Current Liabilities: and not considered for budgeting purposes). Accounts Payable g. Each bat requires 0.6 hours of direct labor; direct labor costs average $26 per hour. Stockholders' Equity h. Variable manufacturing overhead is $0.50 per bat. Common Stock, no par $ i. Fixed manufacturing overhead includes $1,000 per quarter in depreciation and $2,780 per quarter for other costs, such as insurance and property taxes. Retained Earnings j. Fixed selling and administrative expenses include $10,000 per quarter for salaries; Total Stockholders' Equity $1,500 per quarter for rent; $1,600 per quarter for insurance; and $400 per quarter for depreciation. Total Liabilities and Stockholders' Equity k. Variable selling and administrative expenses include supplies at 1% of sales. 140,000 (30,000) 110,000 $ 193,130 8,000 140,000 45,130 185,130 $ 193,130 Requirement 1. Prepare Irwin's sales budget for the first quarter of 2025. Irwin Batting Company Sales Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Total Budgeted bats to be sold 2000 3600 5600 35 70 Sales price per unit 70000 252000 32200 Total sales Requirement 2. Prepare Irwin's production budget for the first quarter of 2025. Irwin Batting Company Production Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Budgeted bats to be sold 2000 3600 Plus: Desired bats in ending inventory 550 320 Total bats needed 2550 3920 Less: Bats in beginning inventory 550 520 2000 3400 Budgeted bats to be produced Total 5600 870 6470 1070 5400 Adult Requirement 3. Prepare Irwin's direct materials budget, direct labor budget, and manufacturing overhead budget for the first quarter of 2025. Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours. Irwin Batting Company Prepare the manufacturing overhead budget. (Enter any per unit amounts to two decimal places, Direct Materials Budget For the Quarter Ended March 31, 2025 Review the production budget you prepared above. Youth Review the direct labor budget you prepared above. Bats Irwin Batting Company Manufacturing Overhead Budget Direct materials per bat (ounces) For the Quarter Ended March 31, 2025 Direct materials needed for production Youth Adult Total direct materials needed Bats Bats Total Bats Total Plus: ess: Budgeted purchases of direct materials irect materials cost per ounce udgeted cost of direct materials Prepare the direct labor budget. (Enter any hours per unit amounts to two decimal places, X.XX.) Review the production budget you prepared above. VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Insurance and property taxes Total budgeted FOH Irwin Batting Compan Direct Labor Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Budgeted manufacturing overhead costs Total Direct labor hours Budgeted manufacturing overhead costs Direct labor hours needed for production Predetermined overhead allocation rate Budgeted direct labor cost Requirement 4. Prepare Irwin's cost of goods sold budget for the first quarter of 2025. Before preparing the cost of goods sold budget, calculate the projected manufacturing cost per bat for 2025. (Round all amounts to the nearest cent.) Youth Bats Adult Bats Total projected manufacturing cost per bat for 2025 Now prepare the cost of goods sold budget. Review the sales budget you prepared above. Review the production budget you prepared above. Irwin Batting Company Cost of Goods Sold Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Total Bats produced and sold in 1st quarter of 2025 Total budgeted cost of goods sold Requirement 5. Prepare Irwin's selling and administrative expense budget for the first quarter of 2025. Review the sales budget you prepared above. Irwin Batting Company Selling and Administrative Expense Budget For the Quarter Ended March 31, 2025 Total budgeted selling and administrative expense