Accounting question 1

- Data Table Vang Batting Company Balance Sheet December 31, 2024 Assets Current Assets: Cash $ 20,000 Accounts Receivable 17,900 Raw Materials Inventory 3,000 17,300 Finished Goods Inventory Total Current Assets $ 58,200 Property, Plant, and Equipment: Equipment 150,000 (45,000) Less: Accumulated Depreciation 105,000 $ 163,200 Total Assets Liabilities Current Liabilities: | Accounts Payable $ 13,600 Stockholders' Equity Common Stock, no par 70,000 Retained Earnings 79,600 Total Stockholders' Equity 149,600 $ 163,200 Total Liabilities and Stockholders' Equity - More Info a. Budgeted sales are 1,300 youth bats and 3,300 adult bats. b. Finished Goods Inventory on December 31, 2024, consists of 500 youth bats at $17 each and 550 adult bats at $16 each. C. Desired ending Finished Goods Inventory is 250 youth bats and 250 adult bats; FIFO inventory costing method is used. d. Direct materials requirements are 40 ounces of wood per youth bat and 64 ounces of wood per adult bat. The cost of wood is $0.15 per ounce. e. Raw Materials Inventory on December 31, 2024, consists of 20,000 ounces of wood at $0.15 per ounce. f. Desired ending Raw Materials Inventory is 20,000 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 $10 per hour. h. Variable manufacturing overhead is $0.80 per bat. i. Fixed manufacturing overhead includes $600 per quarter in depreciation and $16,410 per quarter for other costs, such as insurance and property taxes. j. Fixed selling and administrative expenses include $13,000 per quarter for salaries; $5,000 per quarter for rent; $2,000 per quarter for insurance; and $400 per quarter for depreciation. k. Variable selling and administrative expenses include supplies at 1% of sales. The Vang Batting Company manufactures wood baseball bats. Vang'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. Vang sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $50; the adult bat sells for $65. Vang's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season. Vang's balance sheet for December 31, 2024, and other data for the first quarter of 2025 follow: Requirement 1. Prepare Vang's sales budget for the first quarter of 2025. Vang Batting Company Sales Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Total Budgeted bats to be sold Sales price per unit Total sales Requirement 2. Prepare Vang's production budget for the first quarter of 2025. Vang Batting Company Production Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Total Plus: Total bats needed Less: Budgeted bats to be produced Requirement 3. Prepare Vang'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. Begin by preparing the direct materials budget. Vang Batting Company Direct Materials Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Total Direct materials per bat (ounces) Direct materials needed for production Plus: Total direct materials needed Less: Budgeted purchases of direct materials Direct materials cost per ounce Budgeted 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. Vang Batting Company Direct Labor Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Total Direct labor hours needed for production Budgeted direct labor cost Prepare the manufacturing overhead budget (Enter any per unit amounts to two decimal places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Review the production budget you prepared above. Review the direct labor budget you prepared above. Vang Batting Company Manufacturing Overhead Budget For the Quarter Ended March 31, 2025 Youth Adult Bats Bats Total VOH cost per bat Budgeted VOH Budgeted FOH Depreciation Insurance and property taxes Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Requirement 4. Prepare Vang'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. Vang 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 Vang's selling and administrative expense budget for the first quarter of 2025. Review the sales budget you prepared above. Vang Batting Company Selling and Administrative Expense Budget For the Quarter Ended March 31, 2025 Total budgeted selling and administrative expense