a.

Budgeted sales are 2,000 youth bats and 3,300 adult bats.

b.

Finished Goods Inventory on December 31, 2024, consists of 250 youth bats at $16 each and 520 adult bats at $19 each.

c.

Desired ending Finished Goods Inventory is 250 youth bats and 240 adult bats; FIFO inventory costing method is used.

d.

Direct materials requirements are 52 ounces of wood per youth bat and 58 ounces of wood per adult bat. The cost of wood is $0.30 per ounce.

e.

Raw Materials Inventory on December 31, 2024, consists of 25,000 ounces of wood at $0.30 per ounce.

f.

Desired ending Raw Materials Inventory is 25,000 ounces (indirect materials are insignificant and not considered for budgeting purposes).

g.

Each bat requires 0.5 hours of direct labor; direct labor costs average $15 per hour.

h.

Variable manufacturing overhead is $0.80 per bat.

i.

Fixed manufacturing overhead includes $900 per quarter in depreciation and $12,654 per quarter for other costs, such as insurance and property taxes.

j.

Fixed selling and administrative expenses include $15,000 per quarter for salaries; $4,000 per quarter for rent; $1,500 per quarter for insurance; and $400 per quarter for depreciation.

k.

Variable selling and administrative expenses include supplies at 5% of sales.

Haney Batting Company
Balance Sheet
31-Dec-24
Assets
Current Assets:
Cash	$25,000
Accounts Receivable	22,800
Raw Materials Inventory	7,500
Finished Goods Inventory	13,880
Total Current Assets		$69,180
Property, Plant, and Equipment:
Equipment	165,000
Less: Accumulated Depreciation	-40,000	125,000
Total Assets		$194,180

The Haney Batting Company manufactures wood baseball bats. Haney's two primary products are a youth bat, designed for children and young teens, and an adult bat, designed f high school and college-aged players. Haney sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $30; the adult bat sells for $60. Haney's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Haney's balance sheet for December 31, 2024, and other data for th first quarter of 2025 follow: (Click the icon to view the balance sheet.) (Click the icon to view the other data.) Read the requirements. Requirement 1. Prepare Haney's sales budget for the first quarter of 2025. Requirements 1. Prepare Haney's sales budget for the first quarter of 2025 . 2. Prepare Haney's production budget for the first quarter of 2025 . 3. Prepare Haney'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. 4. Prepare Haney's cost of goods sold budget for the first quarter of 2025. 5. Prepare Haney's selling and administrative expense budget for the first quarter of 2025